Document N2Y4voXmgD8Qv22Lq99zVdwmb

PROCEEDINGS FIFTY-EIGHTH ANNUAL CONVENTION NATIONAL PAINT, VARNISH AND LACQUER ASSOCIATION, INC, November 6/7, Hotel Traymore Atlantic City, N.J. The MASTER REPORTING COMPANY, Inc. Law Stenography Conventions General Reporting CHICAGO 540 NORTH MICHIGAN AVENUE Superior 3255 CLEVELAND STANDARD BUILDING Main 0894 NEW YORK 51 MADISON AVENUE ICxington 2*5588 WASHINGTON NATIONAL PRESS BUILDING National 8558 002041 i TABLE OF CONTENTS Wednesday Morning Session November 6, 19^6 P age Call to Crver by President Trigg.................... Invocation r.y the Rev. Harold G-. Caunt.. .. Address of Welcome by President Trigg......... Responses by: Mr. Paul Elackmore....................................... Mr. Harry P. Obermeyer............................... Mr. G-eorge S. Stuart................................... Mr. J. H. Davey.............................................. Mr. T. Ennis..................................................... Mr. Lucien Ravel............................................ Dr. D. Cannegieter....................................... Business Session: Preliminary Report of the By-Laws Committee, by C. K. Stodder............. Report of the Treasurer............................. Preliminary Report of the Nominating Committee, by W. M. Zlntl.................... Remarks by M. M. Zoller........................... "Diamonds at Your Doorstep," by Shipley D. Eurton..................................... Address by the President............................. 1 1 2 ,4 5a 6 a 9 n 15 is 19 21 24 24 26 Wednesday Afternoon Session November 6, 1946 Address by Franklin J. Lane................................. Address by Julian A. Littau................................. Discussion............................. Address by Philip Coombs........................................ 42 4S 57 7^ 002042 11 TABLE OF CONTENTS [Continued] Wednesday Afternoon Session Noventer 6, 19^6 [Continued] Page !,The Industry's Advertising Campaign," by Elbert D. Feck....................................... Address by the Hon. Albert W. Hawkes.... 97 119 Thursday Morning Session November 7> 19^6 Call to Order by Franklin J. Lane............. Remarks by Chairman Connolly........... ............ "Trapping Color Business with Light," by Dr. Samuel G. Hibben........................... Remarks by Chairman Connolly......................... "Color is a Merchandising Tool," by Eert J. Lange.............................................. "Quantacolor," by Howard Clark.................... "A Business Approach to Color," by Frederic H. Rahr..................................... Remarks on Paint Power by Chairman Roh.. "The Industry's Great Need of Paint Power; How It Came to be Prepared," by Ernest T. Trigg................................ "Paint Power: How to Sell It, and How to Teach It," by Lonore Kent................ "How Paint Power Will be Used by the ,, United States Office of Education," by Dr. Walter F. Shaw............................... "How Paint Power Will Benefit the Manu facturer, " by Roy B. Anderson............. l4o 1^1 W 14-6 W-9 160 176 lSl IS3 190 191 192 002043 in r TAELS OF OCX;TESTS [Continued] Thursday Morning Session November 7, 19^6 [Continued] Page "How Paint Power Will Benefit the Dealer," by Harry 77. Constant.............. 19^ Painting Contractor," by J. Frank Jones.................................................................. lS^a Thursday Afternoon Session November 7 19^6 "Chemistry and the Paint Industry," by J. 'Warren Kinsman........................................ "The Nan Who Sells," by Ralph Carney.... Address by Paul S. Kennedy............................. Adoption of Resolution on Decontrol......... Lacquer Program: "Scientific Development in the Lacquer Field," by Casper Apeland.................. ..................................... "Costs and Quality," by Leo Roon.... "Synthetic Raw Materials for the Coating Industry," by B. K. Read. "Future Markets for Lacquer," by J. B. Wiesel............................................ 195 220 252 255"* 257 26l 267 2S3 002044 r iV TABLE cF CONTENTS [Continued] Tri-:iay Morning Session `ovemtsr S, 19^6 Page Report of the Memorial Committee.................. Pinal Report of the By-Laws Committee, by C. M. Stodder.............................................. Raw Material Forum: "Shellac," cy V/llllam H. Zinsser........... "Zinc Oxide Products," by Ralph M. Neumann.................................................. "Lead Products," by F. S. Mormser......... Discussion........................... "Titanium," by D. V. Robertson................ "Solvents," by Frank E. Bennett.............. "Cellulose Products," by J.R. Yeager.. "Synthetic Resins," by Charles J. O'Connor....................................................... "Oiticica Oil," by Otto Eisenschiml... "Tung and Fish Oil," by B.T. Rocca.... "Castor Oil," by V. A. Acer...................... Discussion........................... "Linseed Oil," by T.L. Daniels................ Discussion........................... "Containers," by W. C. Stolk.................... Adoption of Motion to Decontrol All Paint Materials................................................. Approval of Actions of Executive Commit* tee Since Previous Annual Meeting......... Final Report of the Nominating Committee and Election of Officers............................. Installation of Officers................................... 290 291 293 297 299 JQC 301 303 3O5 309 310 Jll 318 320 321 322 32^ 332 332 333 33^ 002045 V TAELS C? C C'.'TSl'ITS [Continued] Friday Morning Session 1'ove.T.ber , l$4-6 [Continued] Page Motion of Appreciation to Convention Speakers............................................................. 33& Motion to Provide Vacation for Presi dent Trigg......................................................... 337 Adjournment Sine Die............................................. .338 002046 290 --r FRIDAY MORN I MG- SESSION November 8, 19^6 The meeting convened at ten o'clock, President Trigg presiding. PRESIDENT TRIGG: In the interest of completing our program as early as we can, we had better start, even though it is a little early for some who were up late. On our program this morning you will find that we have provided for recognition of those who have passed along since our last regular meeting. Mr. Alpers, who is the Chairman of that Committee, unfortunately is ill and is not able to be here this morning, so I am going to ask Mr. Elton if he will be good enough to present the report of the Memorial Committee. [Mr. Elton read the report as follows: 002047 unselfishly to the upbuilding of our Association. It is to the unfaltering and devoted efforts of such men as these that our organization continues to maintain its steady onward march of progress. In reading their names, therefore, we desire to pay tribute to them, to express our sympathy to those they left behind, and to record their passing in the official proceedings of this Convention. DIED A. J. Anderson Werner G. Smith Division of Archer-Daniels-Midland Co. August 1, 1946 David Andrew Ferbert-Schorndorfer Co. December 26, 1945 Stephen C. Babcock (Retired) Babcock Testing Lab. Date Unknown Albert C. Bailey Grasselli Chem. Co. June 8, 1946 Sweetman Berry Continental Can Co. February 22, 1946 Wm. C. Beschorman (Retired) National Lead Co. March 28, 1946 Arthur Bittong Valentine & Co., Inc. December 20, 1945 Maurice Blair A. C. Horn Co. May 20, 1946 Charles A. Blatz (Retired) Blatz Paint & Varnish Co. August 25, 1945 Harry A. Bonyun Benjamin Moore & Co. November, 1945 Kenneth E. Burgess Columbian Carbon Co. February 10, 1946 Sol. L. Buschmann National Can Corp. September 24, 1945 George W. Burgesser Valentine & Co. January 21, 1946 Wm. R. Carnegie (Retired) Berry Bros., Inc. October 22, 1945 Robert Cathcart Lino Paint Co. April 16, 1946 W. S. Clement, Sr. Clement Coverall Co. September 30, 1946 A. E. Clerihew Forman,, Ford & Co. July 15, 1946 Lee Coleman Devoe & Raynolds Co. June 14, 1946 Thomas T. Cook Cook Paint and Varnish Co. August 16, 1945 Wilmer H. Crawford W. H. Crawford Chemical Co. August 6, 1946 Leonard H. Davis Union Carbide & Carbon Corp. February 19, 1946 13 002048 National Lead Co. Geo. De Stefano Issar Einhorn Adelphi Paint and Color Wks. Harold B. Enright Devoe & Raynolds Co., Inc. John V. Faasen Kreuter-Faasen Co. Maurice Falk Falk & Co. Edward H. Fay Impervious Varnish Co. Edgar L. Feininger General Electric Co. Edward J. Forth Gibson-Homans Co. Oscar H. Foss Wooster Brush Co. Oscar J. Friend Manufacturers Agent Adolph Fuchs (Retired) Imperial Paper & Color Corp. Lionel Herbert Geisenberger Johns-Manville Co. Wm. H. Gettmuller H. J. Gettrauller & Co. Fred Gibbs Gibbs Paint Mfg. Co. Wm. G. Golden Reynolds Metals Co. Wm. E. Gott Dewey & Almy Chemical Co. Harold G. Grabill The Glidden Co. Horace Cutler Graves Oil, Paint & Drug Reporter Arthur R. Haley Pittsburgh Plate Glass Co. John A. Hanley Pittsburgh Plate Glass Co. W. T. Harper J. W. Edgerly & Co. W. George Helliar Sturgeon's Ltd. H. R. Henderson Absorene Mfg. Co. Win. Rankin Holland, Sr. Celanese Corp. Louis J. Holly E. I. duPont de Nemours Co. 14 February 15, 1#<# APri> 28, 1946 March 2,1946 Date Unknown Mwh 18, i946 June 6, 1946 June 9, 1948 December 28, 1945 August 9, 1946 April 24, 1946 August 30, 1946 May 15, 1946 December 24, 1945 December 10, 1945 October 29, 1946 January 27, 1946 April 27, 1946 July 23, 1946 February 14, 1946 August 24, 1946 September 19, 1946 August 19, 1946 September 1. 1944 October 29, 1941 January 27, 1944 002049 Edward A. Hofheins T. J. Ronan, Inc. Date Unknown Hal E. Howe (Retired) American Can Co. July 12, 1946 Frederick G. Jeffrey Sargent-Gerke Co. Date Unknown C. Drummond Jones U. S. Paint, Lacquer & Chem. Co. December 31, 1945 Dr. Louis C. Jones (Retired) American Cyanamid Co. December 29, 1945 John A. Kenney Barrett Div., Allied Chem. & Dye Corp. July 12, 1946 deLancey Kountze Devoe & Raynolds Co., Inc. October 2, 1946 Frank Kreideler Chas. Moser Co. April 15, 1946 N. Arthur Laury (Retired) Calco Chemical Div., American Cyanamid Co. January 26, 1946 John B. Lewis John D. Lewis, Inc. September 1, 1945 Edward T. Longstreth Samuel H. French Paint Co. February 9, 1946 Philip Lotz, Sr. Glidden Co. May 19, 1946 John L. Ludwig (Retired) McDougall-Butler Co. November, 1945 Harry McCaughey McCloskey Varnish Co. February 5, 1946 Ralph B. McKinney Hercules Powder Co. September 21, 1946 Charles E. McManus Crown Cork & Seal Co. June 3, 1946 J. J. Mangin (Retired) United Color & Pigment Div., American Cyanamid Corp. May 11, 1946 Laurence E. May Sherwin-Williams Co. March 1, 1946 Luther Martin L. Martin Co., Inc. March 8, 1946 D. E. Morehouse Cook Paint and Varnish Co. December 4, 1945 D. A. Murphy (Retired) Jewel Paint & Varnish Co. March 9, 1946 John J. Nicholson (Retired) Murphy Varnish Co. April 23, i946 John J. O'Donnell Pratt & Lambert, Inc. October 31, 1945 Charles W. Parrott The Lowe Brothers Co. October 22, 1945 Claude T. Porter Porter Paint Co. May 22, 1946 15 002050 Edward J. Reardon Black Diamond Paint & Varnish Works Henry A. Reddy August 23, 1946 E. I. duPont de Nemours & Co. Hugh Reilty, Jr. September 3, 1946 Hugh Reilly Co. John Reinhardt September 15, 1946 Ansbacher-Siegle Corp. Clarence A. Robbins, Jr. May 1, 1946 Robbins Varnish Co. George A. Rogers July 8, 1946 Benjamin Moore & Co. September 21, 1946 A. T. Ronan T. J. Ronan, Inc. August 1, 1945 Israel Rosenblum Parament Chemical Corp. L. C. Sadd March 26, 1946 * James B. Sipe & Co. February 18, 1946 William L. Schroeder National Lead Co. A. W. Scott (Retired) September 21, 1946 National Lead Co. November 9, 1945 Frank Shrader Charles Moser Co. Harvey S. Smalley, Sr. (Retired) June 2, 1946 Johns-Manville August 15, 1946 Harry C. Smith Harry C. Smith Co., Inc., Southern Shellac Mfg. Co. June 12, 1946 Cecil a Stott National Lead Co. September 20, 1946 Harvey P. Thelen Continental Can Co. Edward Thompson (Retired) Thompson & Co. Dr. Maximilian Toch Toch Brothers, Inc., Standard Varnish Wks. August 24, 1946 November 7, 1945 May 28, 1946 Jessie L. Tungate Lilly Varnish Co. Edward W. Tylee Excelsior Varnish Co. Theodore A. Wade Flint Paint & Varnish Co. Frank S. Warzeski Linde Air Products Co. Frederick A. Weaver E. I. duPont de Nemours & Co. Theodore Wenzel Resinous Products & Chemical Co. Homer Addison White Acme White Lead & Color Wks. Date Unknown August 24, 1946 June, 1946 December 21, 1945 August 17, 1946 November, 1945 April 28, 1946 16 002051 W. W. Lawrence & Co. James White Louis S. White Acme White Lead & Color Works John Gilbert Wright Hanlon & Goodman Co. Respectfully submitted, February 20, 1946 September 10, 1946 March 10, 1946 W. A. ALPERS, Chairman, Cleveland R. F. ADAMS, Chicago W. S. AUCHINCLOSS, New York G. B. HECKEL, JR., Philadelphia A. F. VOSS, St. Louis REPORT OF PUBLIC RELATIONS COMMITTEE To the President and Members of the National Paint, Varnish and Lacquer Associationt Inc,: The Public Relations Program of your National Association has been maintained and geared to the economic conditions which have prevailed during the past year. While keenly cognizant of the material shortages which have inhibited as much emphasis upon exterior painting as normally would be in order, a consistent effort has been made to maintain the paint consciousness of the public, while looking forward to the expansion of our public relations program in keeping with the improvement in paint supply which we hopefully anticipate will occur in 1947. The practice of public relations as we conceive it in our National As sociation is much more than just direct publicity--although that is a high essential. Concurrent with direct publicity, there is the cultivation and education of strategic contacts through personal service to a degree that will cause others to understand us and voluntarily help to advance our cause in a spirit of public service. With that end in view, our public relations office at National Head quarters in Washington, has continued to cooperate with editors, writers, publishers, radio stations, educators, government officials and government agencies, civic agencies, other industries and other interests suited to cooperate with our industry. This work entails the assembling and sifting of essential information from many sources which it would be impractical or too complicated for the average individual or company to keep pace with, and to disseminate this information by selective methods. Some of the material is of primary interest only to the members of our industry; other material has applica tion to selected outside interests, while still other material has interest and educational value both for the industry and for the public. The principal channels of service from our public relations office in Washington now include: 1. "Your Weekly Letter"--issued every week except those weeks in which "The Open Door" is issued. 2. "The Open Door"--issued monthly, except during the summer months, 17 002052 when a monthly "statistical supplement" is sent out with "Your Weekly Letter" to maintain the sequence of the paint sales figures. 3. Weekly Public Relations Releases. These Public Relations Releases are intended primarily for the information of the public, and are sent only in answer to requests, except to a small list of such officers of the Association and committee members who logically should be interested in them. However, any member of our National Association who desires to receive the Public Relations Releases regularly can have his name put on the mailing list by sending a request to National Headquarters in Washington. These releases are intended, in the course of the year, to reflect the various factors in our industry. Recently, considerable attention has been concentrated upon specialized product and maintenance finishes and their significance to industry and to the public. Concurrently, interior painting has been stressed to home owners more than exterior painting, in view of the relatively greater scarcity of exterior paint. However, exterior painting has not been ignored, but has been dealt with from time to time with a view to maintaining full paint consciousness on the part of the public. 4. Short News Items Releases. These are short articles or paragraphs intended for the use of editors as "fillers" for odd spaces which are left when newspapers and other publications are made up. Editors like to have them available for that purpose, although many of the items are published anyway, because of their intrinsic interest. The Short News Items releases regularly accompany the longer Public Relations releases. At present, the weekly Public Relations mailing list approximates 750 addresses, of which approximately 200 are newspapers, 150 school in structors and miscellaneous writers and educators who have requested them, including trade journals, magazines, and various specialized publi cations. 5. Special articles. Your public relations office has frequent occasion to respond to requests for special articles on different phases of industry, desired by newspapers, magazines, educational publications, and for radio broadcasts and other public addresses. 6. Statistical and other specialized data. A constant flow of requests is received for statistical data and for miscellaneous information. These are all handled as promptly as possible by personal correspondence. A much larger volume of statistical information than it is practical to publish in "The Open Door" and "Your Weekly Letter," which-carry only what is considered to be of relatively general interest, is kept on hand. This reservoir of accumulated information is available for replying to individ ual inquiries. It is gratifying to report that your public relations office in Washing ton is in very frequent receipt of highly complimentary letters, both from editors and from members of the industry, in appreciation of our Asso ciation's public relations service. It is our earnest hope that an early betterment in the supply of mate rials for the manufacture of the products of this industry in a volume more nearly adequate to meet the pressing public demand will justify 18 002053 25*" PRESIDENT TRIGG: In recording this, may we do so by standing for just a moment in silence. [The members stood in silent tribute.] We will have the final report of the Ey-Laws Com mittee, Mr. Stodder, Chairman. MR. C. K. STODDER: President Trigg, Members of the National Paint, Varnish and Lacquer Association: Your Committe on By-Laws recommends for your consideration the following pro posed amendment to the By-Laws: Article II, Section 3. Change the last sentence from "They are entitled to membership in regional or city associations on payment of the regional or city association dues not including the National Dues," to "They are eligible for membership in regional or city associations and upon election shall pay the regional or city association dues, but shall not be required to pay additional National dues." Article II, Section 4. Change the last sentence t from "They are entitled to membership in each regional or city association on payment of the regional or city association dues not including National dues," to read, "They are eligible for membership in regional or city associations, and upon election shall pay the regional or city association dues but shall not be required to pay any additional National dues." Respectfully submitted, C. K. Stodder, Chairman H. V. Hock S. French Reeves. 002054 r 292* PRESIDENT TRIGrG: The By-Laws require that any changes made must be announced at the opening session of an annual convention, and finally presented at the last meeting. We have comolied with those recuirements. May we have a motion to approve the report of the Committee? [A motion was made, duly seconded and carried, that the report of the Committee be approved.] It is unanimously adopted. Now we will proceed to the Raw Material Forum. We have oulte a number of important raw materials which will be reported upon this morning by men who have been selected in the respective fields and who are authority and thoroughly competent to bring to you the latest word with regard to the situation as to current and future supplies as completely as circumstances will permit them to do so. In the interest of not taking too much time, but, nevertheless covering the ground, it has been arranged with each one of the men who will talk on raw materials this morning to confine their remarks to approximately, 10 minutes yid five minutes for discussion. We have twelve speakers on raw materials this morning, and in order that we may live up to the schedule, unless there is objection from this meeting, I will watch the time and call it to your attention when the fifteen minutes are u d . 002055 293 - We will have to change the order a little. I am going to call first on Mr. William H. Zinsser to come up and talk to us about that very interesting subject of Shellac. MR. WILLIAM H. ZINSSER: You heard the warning to be brief. I was told to deliver a paper, and here it is (re ferring to a telegram). Shellac has survived two wars, which I think is quite astonishing, because there has never been more interest displayed in the synthetic field; there have been great efforts made to replace shellac by some other natural gum or synthetic. The last war was fairly short; the chemists didn't catch up with us. This war was fairly long, and the chemists didn't catch up with us, either. It is rather surprising, and you will be interested to know that in the first nine months the shellac industry produced more shellac than in any year in its history, except the years 1939 and 19^1* which were very big years. Even at that, we were, as you, limited to supplies, steamer strikes, riots in Calcutta, and limited to all kinds of shipping difficulties. The prices of shellac today are very high, and we have to blame our old friend OPA on that. We had a celling on shellac that went back to almost Pearl Harbor up to July. We were supposed to be selling shellac at cents a pound when the raw material cost us more money than that. We went 002056 29V to "s.sklr.gton successfully severs! tines, calling attention of the CPA to tr.e fact that shellac v?as going up from yd to 45 to T:Z to 55) and we weren't allowed to buy any. '/hen the OPA fled or. tr.e first of -July, we thought it was a permanent deatn. I'e were rather glad of it in a way. "e went out to India and bought our heads off at 60 cents a pound, raw ma terial. The OPA came bacr. and told us to sell it at 4-1. Anyhow, things worked out allright. It was lucky we went to buy tr.eshellac at 6l. The OPA, after con siderable study, allowed us as an industry to sell it at prices which were limited at the time the OPA was not doing ?ny business. So that will explain to you why the price of shellac, vhich doubled in India--we could have bought all the IncLan crop at 4o cents, 50 cents, but the Indians were smart enough to know the OPA was off, the country was short of shellac, and we had to pay an average of 60 cents a pound for it. Everybody now asks me since I have been down here, '..hich way are things going? That reminds me of a story about a fellow who was slightly tight. He left his car at the curb and went into a bar and said he would like to have a double Manhattan. The bartender asked how he liked it. Ke said he would like to have threeslugs of rye, three slugs of gin, t.iree slags of abscintiV; two cherries, seven olives, and a rubber band. The man said to him he would be very glad to 002057 r,re??re the drink, cut what v-s the ru'c'cer bend for? He said, `That it to hole, the hair on my head." This fellow staggered out and got back, to the c-~-r. He grabbed the rear door and found himself in the car. A cop aw him and said to him, "You are in no condition to drive this car, young fellow." He said, "I am in no condition to wall:, either." The cop said, "Let me see your license." He said, "You mind your own business, officer. If you want to be so terribly efficient, why dor*' t you find the fellow who stole the steering wheel?" The country has lost Its steering wneel. The Republicans are going to get hold of it. They won't be able to run the car right straight from the very beginning any too fast, but which way is our country going? How much of a mar. et are we going to find for five-dollar paint and fivedo liar shellac? How long can these levels last? Will the public continue to buy material? To us it seemed, and probably to all Industries, that the higher we put the price, the more we sold. I am inclined to think those days are gone. On the other hand, what is to bring the market down, particularly like shellac, where the market Is in India, sixty days away? As far as I know, there are just two things tnat will affect the shellac market. One, if some snellac house would be a public benefactor and buy its head off at these 002058 296 ` extraordinary prices and bring in a lot of shellac and cause the ~.nr' et to fall because of a glut of sr.ellac in this country after five years. I don't thin!* many of us are going to o t..st. 3o that we are keeping our inve tories low, telling sur customers to >eep their inventories low. You probably are adv.cing your customers to be conservative. It loo' s to me as though prices for a while were fairly well stabilized at high levels. If, however, labor is told to take it a little easier, if people like the General Ilectric Company allow them to earn more than one cent on their earnings, which they declared the third quarter of the year, as against 51.26 last year, if there is a willingness of labor to work, which we haven't seen in five years, if one man will again do the job of one man, why, I think the present levels can continue, because we will have production and volume to counteract price. If we don't, and big industry shuts down because they will not be shoved around by labor any longer, and we have slight direction in that particular way, as far as the country is concerned, then we may have a temporary halt in the large business we have all been doing, and, incidentally, that always amuses me because we certainly have been bellyaching about our business, but I haven't met anybody down here who wouldn't lire his balance sheet for 19^7 to be the same as it was for 1946. Nobody knows what they made that stuff out of, but it seemed to go all right. 002059 f 297' Those days are going, too. Tests will cone back. >n' r. be sTIe to put anythin*- Ir. the Lilly tups that you used to out ir. oar.s, that Is, if the car. people v:!ll give us t.os cans. That 13 vhe ay it is to go all ITT ~ r c eay Ls that I can't see ;rest deal, at least our industry. refrigerat r.r c there may be plent lately, are in a non-luxury line, sit-ly see how, except for s slight recession or a slight hesitation at today's high prices, I don't see why the paint industry shouldn't go sweeping along for the next few years as it has in the past. Thanh you very much. [Applause] PRB5IDL.:? TRIGG: Does anyone wish to ask Mr. Zinsse)? any questions or make any comments on this statement of his? Bill, you seem to have done a perfect job. Thank you very much. It has been suggested that we present the subject of pigments before the oils. Is Mr. Neumann in the room? '.'ill you come up and talk to us on Zinc Oxide Products? MR. RALPH >i. N2UMANN: Gentlemen, I have been answering cuestions all week, and probably many of you in the room have heard what I am going to say at the present time. The situation with regard to zinc oxide and zinc sulfide olgments is the subject of this talk. I have given 002060 2Qg 1 the matter a lot of thought as to what to say to you. The situation is very confusing. The paint industry is a large consumer of all these pigments and mere are other industries that are large consumers of all these pigments, but summing up the situation, as far as we can see at the present time, ar.d as far as it can be prophesied for 19^7 we must say that the supply of all of these products, including lithopone, which primarily is a zinc pigment, is to he limited to *the current production, pnd the demand from all Industries, as far as we can learn, will undoubtedly be greater than the supply for tne first six months, at any rate, of 19^7The producers of zinc oxide ana all of these pig ments will probably go into the new year with practically no stocks on hand, and probably the consumers will have very limited stocks. There is no outlook for an increase in the current production, so that all of these pigments, at least for the first six months of 19^7 > will necessarily have to be dis tributed on some kind of quota basis. I have said this to many of you all through the week, and up to the present minute there is no change in that picture. Thank you* [Applause] PRESIDENT TRIGG: Any questions or comments? Well, I guess everybody has got all the zinc oxide they want. 002061 'Tow we will hear about _ea& products, Mr. Felix 2. I'ornser. Mr. V.*or.T.ser is the Secretary of the Lead Industries As ociatior. and is aoing and for a long time has done a very excellent job for then and the lead manufacturers. Those in our industry who are interested felt that they would like to have Mr. 'iornser present the situation with respect to lead, and I have great pleasure in calling on you, Felix. [Mr. Felix 2. '/ormser read his prepared pacer, as follov.-s: 002062 uuiiu \AM VJSWX1US i Paint* Varnish & Lacquer Assn.* Inc* ^ore Hotel* Atlantic City* N* J* eS$l5eLdpi*w!. Person* Director of Public Halations ppendale Boom TO BE HELD STBJCTLT COBF UNTIL AFTER DELIVEEI OH CORVHJTIOH FLOOR DREDAI, HOT. 8, 1946 f LEAD PRQDqCTS An Address by Fells Edgar Wonnser, Secretary I Lead industries Association, At the 58th Annual Convention of the Rational Paint, Varnish and Lacquer Association, Inc., Traymore Hotel, Atlantic City, H.J. Friday, November 8, 1946 ft Although the topic assigned to me is LEAD PRODUCTS used by the paint `industry, such as white lead, red lead, basio lead sulphate and other lead pig^ ments, I intend to speak almost entirely on the pig lead situation because it is the root of your current inability to procure all the lead pigments ypu might like to utilise. The pig lead shortage today is an excellent illustration of what Government controls on prices, profits, production, distribution and imports can do when they supplant the operations of a free market in a commodity of international importance. The elements in the lead situation are easy to grasp. In the first place, lead has wide application in industry and is so extraordinarily useful that in times of great business activity, as today, the demand for it is exception- ' ally strong. For example, the automotive industry needs large quantities of lead for the construction and continued operation of automobiles, in storage batteries, solder, bearing metals, brake linings, and in the very gasoline which propels them. The building industry, as you well know, requires large amounts of lead in the form of paint, both white lead and red lead, in plumbing, and in sheet lead .. wherever sulphuric aoid is used. The public utility industry consumes large quantities in cable sheathings for telephone toll and power lines* 002063 -2- Even the food industry in the United States needs large tonnages of lead, botf j as the insecticide - lead arsenate - for spraying fruit trees, and as ammunition for the farmer to supplement his .food supply and to cut dovrn depredations by preda 1 tory animals. There are a number of other important user, too detailed to mention here# In the agregate I estimate that, if it were available, industry could con sume today, in the United States alone, between 1,000,000 and 1,250,000 tons of lead per year# This continued the wartime trend which set a mark of well over 1,000,000 tons per year for a period of six years, from 1940 to 1945 inclusive# To satisfy such a huge demand for the metal there are four sources of supply open: 1# Domestic mine production, 2# Domestic scrap or secondary lead recovery, 3# Imports, and 4# Government Stocks, or private stocks# The fourth source we can dismiss at once, as the Government stockpile is only around 30,000 tons and I do not think the military authorities will look with much favor to an impairment of that modest supply# Let us analyse the situation in each one of the other available sources of supply as shown on the table following; IT. S. LEAD SUPPLIES (1937 - 1946) (in Short Tons) U.S I,line Production of Lead Secondary Lead Production Imports (Lead Content) Total Supply 1937 1S38 1939 1940 1941 1942 1943 1944 1945 1946 (Estimated) 456,000 370,000 414,000 457,000 461,000 496,000 453,000 417,000 388,000 350,000 275,000 225,000 242,000 260,000 397,000 323,000 342,000 331,000 353,000 300,000 41,000 64,000 87,000 282,000 381,000 492,000 319,000 321,000 300,000 125,000 731,000 659,000 742,000 1,000,000 1,240,000 1,312,000 1,115,000 1,070,000 1,051,000 775,000 002064 1 -31* Domestic Mine Product ion - By dint of extraordinary effort and the sacrifice of their ore reserve position, many lead mines were able to keep prod uction keyed up to a relatively high pitch during the v/ar and succeeded in pro ducing close to 500,000 tons in 1942. Thereafter, however, owing to progressively serious labor shortages, production declined until this year only about 350,000 tons of lead are expected to be produced* Only about two-thirds the labor necessary for capacity production is now working in the mines, and it is doubtful whether the lead mines may expect much relief so long as we have "full employment" in the United States* In addition, lead mines have been operating under a subsidy system whereby most mines have been paid a bonus above the ceiling price of 3*25/ per lb. The bonus may range from 1/ up to 7*50/ so that the top price received by some mines is 15*75/, but the bonus is only paid on production above a quota determination of the Government for each individual mine# Some American lead mining companies, however, are not receiving one cent in subsidy but are compelled to sell their lead at 8*25/ while the Government at the same time is purchasing lead from Mexico and other countries at 10*25/, selling it at 8*25/ in this countiy and absorbing the loss, a discrimination against some of the citizens of our country in favor of the nationals of another# Moreover, the mine quota is subject to change at one monthfs notice, so that after it has been set, and if a mine should redouble its efforts to increase its profits, the quota would be readjusted speedily# This is not a system calculated to produce the utmost from American lead resources* 2# Domestic Scrap or Secondary Lead Recovery - ITow let us turn to secondary or scrap lead production* This is an extremely important source of lead and generally accounts for a fairly steady annual tonnage of between 300,000 and ft l 350,000 tons of lead per year* Please note that this tonnage corresponds closely 002065 m 4 * A raost interesting situation developed during the OPA "holiday" which has partly dried up this source of lead. During the OPA "holiday" an open market prevailed and the price of lead rose to 9.50/, out when the OPA was restored to life, it rolled back the price to 8.25/, with the immediate result that scrap dealers had no desire to sell their accumulations to the smelters and refiners at the ceiling price, knowing full well that the OPA statutes would expire on June 30, 1947, and that the price of 8.25/ was far below the wo rid market. As * a matter of fact, the vrorld market is around 10.25/ today. In other words, the scrap dealer was taking a very small gamble indeed in sitting on his lead rather than to dispose of it at a sacrifice price. In addition, some ores and concentrates and scrap, which were bought at 9.50/ by the smelters during the OPA "holiday" are frozen today as the purchasers naturally do not wish to sell this material at a loss, at 8.25/. So much for the scrap situation. 3. Imports - Now let us look at the third source, namely, imports. A great change has taken place in the lead economy of the United States. Before the war lead production and consumption were in balance and imports were of minor significance. During the war, however, American industry demonstrated its capacity to consume such large amounts of lead that the United States mines, plus the scrap, vtere no longer able to supply the demand, so large tonnages of lead in both merchant able pig fora and in ores and concentrates were imported. In 1942 close to 500,000 tons were imported in that fashion and for the six years 1940 to 1945, imports averaged 349,200 tons per year. Here, again, however, an important Government control stepped in,a control that is largely responsible for the partial paralysis existing in lead consuming industries. The Government became the sole importer, during the war. Private imports were forbidden. Recently it was revealed that the Government has some sort of an informal understanding with England to limit its imports into the 002066 lead coming into the Unitea States in 1946 will total only 125,000 tons and this despite the fact that lead is available in Mexico, Canada, Australia, Peru and elsewhere if American companies were permitted to buy it# Several companies, desperately needing lead for the conduct of their operations, have appeared in 'Washington and requested permission to purchase lead from Mexico, or other countries, at admittedly higher prices than the domestic ceiling price, but expressing a willingness to observe domestic ceilings on resale here* Their pleas have been uniformly denied* The power of the Government to continue i.r.port restrictions expires on March 31, 1947, under the Second Yvar Powers Act, and I hope it will not be renewed* In view of the facts in the lead situation as I have given them above, I suggest- a simple remedy, i*e*, that the Government decontrol lead and lead prod ucts* They are all negligible items in the cost of living of the American people but of tremendous significance in our industrial economy* A free market would then be restored and enable users of lead to bid for the metal internationally as well as nationally* It seems odd to me that meat, dairy products, and other commodities of vast importance in the daily cost of living should be decontrolled whereas lead must continue under strict Controls* If we are not to have decontrol, the Government might at least advance the ceiling price to the world market price so as to unlock the present frozen stocks of ores, concentrates and scrap and to encourage the steady and free move ment of scrap to smelters* If this isn't done, then more lead should be imported into the United States by the Government and the premium price system modified so as to introduce incentives rather than restrictions on production* Until Government controls on lead are terminated the lead shortage will be with us# From a long range point of view, let me reassure my listeners that the * . ..-j --4. us r* nnstwar orices of 002067 - 6lead will, I am confident, so stimulate prospecting and exploration throughout the world that new sources of production will be discovered, as in the past, and existing sources intensively exploited* In this connection, considering the Bureau of Labor Standards commodity price index, lead is not expensive currently. In fact, 11^ is the price at xvhioh it should sell in relation to other commodities today, if the index is used as a standard. The ceiling is 8*25^. Higher postwar prices will no doubt cause lead to lose some existing markets to substitutes but it is a contingency that must be borne under our competitive free market system while the period of necessary readjustment oocurs* What all of this will mean to the future of lead in the paint industry is a matter largely of conjecture* I do feel, however, that as the paint industry is only one of numerous important lead consuming businesses,' paint makers should press the Government for a supply of the raw material so long as Government controls remain, just as other lead consuming industries are doing* Some lead pigaents were understandably sacrifioed during the war so that more batteries, ammunition and other war produots could be made, but that situation no longer exists. It is, therefore, I believe, a sound policy for the paint industxy to protect its interests in demanding a fair peacetime share of the available domeatie and foreign supply, or it may be lost in the scramble* 002068 300 PRESIDENT TRIGG-: Thank you, Mr. Wornser. Are there any questions or comments? Well, I would like to make one, hr. Wormser and gentlemen. During the war, we had the military necessities and emergency which had to come first, and I think that most of us accepted those things, realizing that parceling out criti cal materials, making way for war necessities, had to come ahead of everything else. . The war is over and I think you will all agree with me that we object to the continued controls that were neces sary during the war and that we should get back on to a peacetime basis of free distribution and action. The Govern ment is constantly telling us and telling the world that what we need is more and more and more production, and we agree. -ut while the Government is doing that in various ways and in various departments, the OPA organization is definitely cur tailing production, at least so far as our Industry is con cerned. White lead is an outstanding example of it. We are not getting our proportionate share in the paint industry of the white lead. That is correct, is it not, Mr. Wormser? MR. WORMSIR: Yes, that is right. PRESIDENT TRIGG: We are not getting our proportion ate share. The Government is still continuing to control the distribution of lead products, giving to some industries which 002069 3or they think are more important than some other industries a greater percentage of it. I would like to ask this meeting this morning whether you would approve a resolution coming out of this body representing the whole paint industry, protesting against the continued price control on pig lesd and the continued control on distribution of the products of pig lead. If that strikes a popular note, I would be very glad to have a motion made to that effect, with the understanding that the resolu tion will be properly couched to express what I have just said to you. MR. K. L. WILKINSON [Debevoise Company, Brooklyn, N.Y.]: I so move, Mr. President. [The motion was seconded by several members.] PRESIDENT TRIGG: Are there any comments on the motion? All In favor, please say 11 aye"; contrary, "no." It is adopted. Thank you very much, Mr. Wormser. Now, titanium, by Mr. Robertson! [Mr. D. W. Robertson read his paper, entitled, "The Supply Outlook for Titanium in 19^7>" as follows: 002070 HS SqrTOJm09* An Address By D. . Robertson, Tic* Pr at ths 58th Annual Conrantion of tha It Trsynore Hotel, Atlantic City, B TO BB HELD STBICTLI nrrjvgSI OB GOBTEBCIOH fLOOB /*! UBUi . r , , . --wea- o, i.94& _ At tha request of hr* Trigg, your President, Mr. Weismuller, Assistant General Manager of the Pigments Department of E* I. <iu?ont da Reaours A Company and I have undertaken to obtain available Infornatlon froa all of the produoara and forecast toe proapeots for on increased supply of titaniua ...igaenta during the year 1947, and make a guess with respeat to the adequacy of this supply in relation to deaand* This stateaent, therefore, represents a joint opinion, frost which any differanoes in rises hare been ellaiaated and is derlred froa inform ation supplied by all producers* First it should be recognised by ereryone that aa aueh titaniua pigmental* being supplied the paint industry no* aa in any pre-ear year* la other sords, there is no shortage baaed upon pre-ear atandarda and unlike aaay other ao--od ities which are being produced in smaller quantities, tha output of titaniua, dtt this aoaent, la as high as at any prerious tins* 'i Ora is not iarolrad in the immediate outlook for titaniua, that is, one to two years, although other raw saterials aay be a serious problsa* Tha definitely Halting factor Is piapt capacity and it is not expected that capacity rill be adequate to aeet deaand in 1947* It is believed that tha reasons for this lack of capacity can ba nada quite obrious. In tha first pleas, titaniua aanufactura is a vary complex operation shich.requires equlpaant froa a large cross seotlon of the country's industrial faorlcatlng facilities, which neans tr.nr. plant construction requires considerable tine under As neat favorable conditions, ana under present circumstances, aay ba extended by strikes or other production stu. pages and delays in tha plants mad mins a of literally hundreds of different fabrlooting and aatarial sources of supply Under existing conditions, therefore, the tiae required for additions to capacity aay range froa one end ^ half to a possible three years, depending upoa tha simo of units iarolrad and tha eoalltloan which exist through tha period of eonstrnotlon 002071 For example, at this ncaent, the boat estimate for delivery tine oa acne equipment is eighteen nontha and this pre-supposes no delay due to strikes or other inter- ferenoe with production* In addition to the tine factor, the sane complexity of pigment plant require 1 ments is directly reflected in capital investment per unit of prodxxotion. Titanium dioxide probably requirea a larger capital investment per unit of production than any other asio raw aaterial entering into the paint industry* It la quite obvious that this combination of time for plant oonstmetion and the extreaely high capital y coat tend to reatriot rapid expansion and perhaps properly so. For example, over expansion, followed by a deeline in demand for plgaeat, with eoaaequeat idle capacity alght easily increase the ooat of titaniua dioxide by a substantial percentage* Another important factor In the present situation is the very rapid rate of growth la the use of titaniua* Titaniua is a comparatively new aoaaodlty which W not reached a 3tatio condition in use when war interrupted expansion* The somaoqueass was that pressures were built up to expand use, in the fame of a Governmental half to expansion of facilities* Actually, present requirements are that the war accelerated demand be net iaaediately by a comparable increase in supply* Wills this is not \I possible, the past record of tho aanufaoturers of titanium pigments appear* to entreat j confidence in their effective application to the problem* For exaaple, in tho tom year period 1932 through 1941* the time of our entry into oar, the produetion of titaniua pigments was increased ten fold* The foregoing is- presented as a brief contribution to a background of facts and a better understanding of tho actual situation which exists and which is beyond the control of the produssrs* It is not offered as an exouse or alibi, for ths i good reason that production would have been auoh greater today than is tho ease, if Government restrictions had not prevented the installation of msro adequate facilities which the industry was ready and willing to undertake over the peat three or four years* Individual producer* exerted every effort to got this restriction relaxed, expasjelly i during the last year of the war when the present situation was clearly foreseen sad tho 002072 -> importance of s o b* preparation fcr _ost-war ieaand was reoognited. In this effort, Ur* Trigg ana the Association lent their full support*. On* other point should be zaua czear. The paint industry has always been the largest consuaer of titaniun pigaents, taxing about 70:i ox* the total production. This percentage has rerained substantially unchanged curing the past several years except for a slight increase during the war, when the rubber industry was not taking its quota. Tou can, therefore, be assured that no other class ox' consuaer is profiting by a sore adequate supply at your expense. We see no reason for deli-ving that this condition will change during the coning year. Based upon projects under way and sufficiently well advanced as to be reasonably certain of coapletion during 1947, it is expected that there will bo an addition of about 22% to the present plant capacity before the end of next year and that tils increase will be distributed in inoreaents froa about January to the end of the year* ill calculations arc on the basis of the titaniun dioxide content of coth prlao cad composite pigments. 0* W. Robertson 10-28-46. 002073 302 PRESIDENT TRIGG-: Are there any questions? I would like to take this occasion to say to Mr. Robertson and other titanium producers that our industry by and large recognizes the splendid and equitable job you have done in distributing your product without Government controls. This is an out b standing example of how industry can handle its Job better than the Government can do it for them. There was quit,e a battle at one time with the Government agencies with respect to this particular question of titanium and its control, and i they were very definitely informed and made to understand that after the Government got what it needed for war purposes, the * * remainder of the production could be more equitably and more \ satisfactorily and intelligently distributed by the producers than would be possible through Government machinery. The Government finally permitted the distribution to be made that way and our industry, Mr. Robertson and the other titanium manufacturers, have benefited by it, and we appreciate the job that you did. Thank you very much! [Applause] Now, I would like to go over into the field of sol vents. Mr. Prank E. Bennett, who is the Acting Director of the Chemicals Division of CPA, formerly WPS, as you know, has been good enough to come here at our invitation to talk to you on the general subject of solvents. Mr. Bennett has been in this job with the Government for some time. It has been our privilege and our benefit to work with him rather 002074 303 closely and I want to take this opportunity agsin to express to Mr. Bennett the appreciation which the industry feels to him for the very intelligent job which he has done under difficult circumstances. Mr. Bennett! [Applause] MR. FRAMM 3. EENMETT: I appreciate the kind words Mr. Trigg has been good enough to say about me. Regarding solvents, I believe that our situation is growing better every day. If we can get along from now on without any further work stoppages, I believe your difficultiej so far as solvents go will be pretty nearly at an end. Butyl alcohol and the acetates have been in short supply due to the unavailability of molasses, and the reluc tance on the part of producers to use corn. Ve have today the largest corn crop in the history of the country, and while the prices for butyl alcohol and butyl acetate may be higher than those for molasses, our facilities for the production of butyl alcohol should be operating at their limit. One large producer of butyl alcohol today is utilizing surplus potatoes and I believe the problem is pretty well licked as far as using this raw material is concerned. Ethyl alcohol is short for the same reason that butyl alcohol is short, because we did not have enough mo lasses to operate the alcohol plants at their full capacity, but we have had the good fortune to have a very large stock pile of Industrial alcohol owned by zhe Government that will 002075 304 tide us over until the corn crop comes in. There are ample facilities for the manufacture of ethyl alcohol, as you well know. During the war, we produced 650 million gallons of alcohol a year for the smokeless powder and synthetic rubber program. Facilities for the production of acetone have been working at their limit right along, but the demands for ace tone have increased tremendously from a rayon production as well as a solvents production standpoint due to the shortage of ethyl acid. The petroleum solvents, methyl ethyl ketone and methyl isobutyl ketone--the facilities for the production of these solvents have been working at their full capacity, but they have been slightly tight in the past few months for two reasons: The Army has been putting to bed its equipment and they have used a tremendous quantity of strippable coatings which are made of vinyl acetate and require these petroleum solvents. With the shortage of butyl alcohol and butyl ace tate, the lacquer manufacturers had to turn to the petroleum solvents, and that is another reason why they have been tight. But I am reliably informed that the strippable coating program of the Army and Navj has reached its end and that the situa' tion as far as the petroleum solvents are concerned should ease considerably. Methanol is in a very tight position at the moment. 002076 305 I believe that it will remain that way, too, until the middle of 19^7. This year is the first year in five years that methanol has been used for antifreeze purposes, and the pro ducers of antifreeze have been very anxious to get as much as they could in that program. The coal strike, closing down one of the largest producers for about two months, has also created a shortage of methanol and we have not recovered from that as yet. I think that covers the matter of solvents, Mr. Trigg. [Applause] PRESIDENT TRIGG: Thank you, Mr. Bennett. The meeting is open for questions. Mr. Bennett is here and I am sure he would be glad to answer any questions that are asked. I guess last Tuesday satisfied us pretty well in a lot of places, so we haven't got many questions left, Frank. We now come to cellulose materials, by Mr. Yeager. Is Mr. Yeager here? MR. ,J. R. YEAGER: Mr. Trigg, Ladies and Gentlemen: Mr. Trigg has asked me to talk about cellulose products and do it briefly. I shall certainly try to do so. As you probably know, nitrocellulose has been in very tight supply all through the year. There have been doubts when it will be possible to increase capacity due to shortage of containers, and a number of plants have been shut down due to the shortage of steel drums. As a result of 002077 3 06 those shutdowns, there have been times when it has been recuired to ask you people at least to be careful on stocking of arums, either empty or full. However, we think that con dition is gradually improving. Drums are beginning to trickle through and we hope that the coming year, we will not be forced to too much difficulty on that particular line. Another step that has been taken is to iron out the bottlenecks in the resin capacity which exist, and fairly good progress is being made there. In fact, this past month of October was the largest production and shipment of nitro cellulose in the history of the industry. I think probably you all felt the effects of that. Also, new plants for the production of nitrocellulose are under way and should come into production sometime next year, so we feel quite opti mistic about the future of nitrocellulose In general. Of course, we have all been worrying about the source of supply for Parlon and Parlon X and that is still going to be tight all during 19^7. We are, however, quite fortunate in the fact that wood cellulose is interchangeable with the cotton liner supply, so with two sources of supply, we feel fairly sure that next year will be as easy, at least, and certainly a lot better than this year. I think that is certainly an encouraging viewpoint. Ethyl cellulose, in which a number of you are quite interested, is certainly going to be short all through 19^7. ii 002078 307 There have been wonderful steps made In increase present production; in fact, one producer has increased the capacity for ethyl cellulose four times the size that it was in 19^1 and that increase is going to continue through 15^7 and there will be considerably more available in that period. However, the indication is that demands are increasing at the same time and we feel sure that ethyl cellulose is going to be considerably tight during the next year of 19^7. Cellulose acetate is in pretty much the same cate gory. It is going to remain tight all during the next year, and while steps are being taken by practically all of the producers of this material, there will be at least twice, we feel, the production in 19^7 as there has been in the past year. But even that is going to fall far short. Probably you are familiar with the estimates that have been made by the plastics Industry alone. These estimates claim that the plastics industry alone will use, or could use, two and a half to three times as much cellulose acetate as is being produced in 194$, and that is apparently going to increase, so that would indicate there is going to be a definite short age of cellulose acetate in the coming year. The supply of sodium carboxymethylcellulose, in which some of you are interested, has been very tight all during the year. The main reason for that is that most of the production equipment might be classified as a large-scale ir-------------------------------------------------------------------------------------------- 002079 308 product-type of production. However, within the next month or so, a plant should come into production or come into the picture so there will he quite a number of olants in present production of CMC or sodium carhoxymethylcellulose; so next year there will he a much larger percentage of that material available, although we do not expect that it will satisfy the entire demand--basing that, of course, upon forecasts of what people are expected to use next year. We hope it won't be like the automobiles. Somebody told us yesterday that he had purchased four automobiles. At least the picture is bright on that. I was asked to talk on cellulose products in gen eral. There are two other groups of products that fall pretty much into the same class of discussion. One of those is the chlorinated rubber. We have heard a number of reports that a much larger supply of rubber is coming into this country next year. We think that is true but we still think there will be a very distinct shortage of these chlorinated products. There is one factor that is going to help the situa tion in that present capacity can produce more chlorinated rubber from the natural product than it can from the synthetic, so that is a help in the right direction. The other chlorinated product, in which some of you may be interested, is the chlorinated paraffin, and there again it is the same story as on the nitrocellulose; that is, k 002080 309 we think that is going to continue to be in fair supply for all the different t;,pes that are consumed by the industry in the next year. Thank you [Applause] PRESIDENT TRIG-3-: Thank you. Any discussion or questions? Synthetic resins, by Mr. Charles J. O'Connor. [Mr. Charles J. O'Connor read his paper on "Syn thetic Resins," as follows: 002081 to be 10 minutes of report and 5 minutes of questions and answers, I accepted and I am sticking my neck out a mile ... I know it so here goes ... There was a time when a man could be a successful manufacturer without knowing too much about his raw materials. If the raw material suited the production department and the price was attractive, he merely had to make a telephone call and PRESTO, his supplies were available. But t5.mes have changed and how they have changed For example, a manufacturer friend of mine told me the other day that he had made a big change in his organization to meet the change in. today's-conditionse He said he had taken all his salesmen, his "extroverts": he called them, and put them in his purchasing department* and he had taken all his purchasing agents, his "introverts", and put them out calling on the trade. He did this so that he would have his "yes" men in the office being nice to the people who had anything to offer him, and his "no" men out in the field being tough with his customers. He said it was working toot But seriously, today's successful Resin manufacturer must do a lot more things than just manufacture. He must trace all of his raw materials right down to their origin, ge must learn all about the total available manufacturing 3o So a* 2 * capacity In the country* He must find out hov much of the material can be Imported, how much of the various raw materials will be available next year, and who are the other claimants for these materials. Today in the Synthetic Resin Industry, we are confronted with many shortages -- the most serious shortage being that of Alkyd Resins. And the reason why it is the most serious is because it not only affects our industry but it affects our whole industrial economy. Without Alkyd Resins or Nitrocellulose, mass production would be impossible ... and a shortage in these materials is bound to create a shortage in many other manufactured products* Now let's see why this shortage exists * An Alkyd Resin is made from Phthalic Anhydride, Glycerine and oil. With, one exception, Phthalle Anhydride is made from Naphthalene, which is a product of the coke' ovens. Therefore, a steel strike reflects itself- all the' way down to industrial finishes ** many people don't seem to realize this. Another reason why there has been a critical shortage of Phthalic Anhydride is because many of the Phthalle plants were badly in need of repairs because of being worked at peak capacity all during the war. Another contributing cause is that a good percentage of the Naphthalene has been going into moth balls in recent months, rather than into Phthalic Anhydride, because 002083  3 there la more profit when Naphthalene la aold as moth balls. It may interest you to know that our company recently bought approximately a million pounds of moth balls and converted them back into Phthalic Anhydride at a considerable increase in cost. We did this in order to keep our plant running and, in turn, keeping industry going. In Detroit the greatest sin you can commit is to shut down the production line. On the brighter side, perhaps DDT will come along and give the "knock-out" blow to moth balls and make more Naphthalene available for Phthalic Anhydride. However, this shortage is bound to be serious for at least the first half of 1947 because there is not enough Naphthalene available to operate our Phthalic Plants at capacity. The Oronite Chemical Corporation of California makes Phthalic Anhydride from ortho-xylene, a product of their parent company, the Standard Oil of California, and there is sufficient amount of ortho-xylene available for expansion, if necessary. However, most of the manufacturing plants in the country would need additional equipment to enable them to use ortho-xylene in their processes. Now, we come to the real bottleneck -- Glycerine, which is a by-product of soap manufacture The amount of Glycerine available is dependent upon the amount of fats used in making soap. We need somewhere in the neighborhood of 230 million pounds of Glycerine to satisfy our industrial requirements. Soap manufacturers have never produced as iI f* !* O nir i t 'in ri--rr~ j 1 --ir*=- -4 - much as 200 million pounds in any one year, falling slightly short of this in 1944 when we were really saving our fats* This year the production figurea will hardly reach 150 million pounds, and it is doubtful if they will ever produce more than 175 million pounds in any one year -- not because there aren't more demands' for soap or because the production facilities are not available, but because chemical detergents known as nsoapless soap" are coming into the market in large quantities, and when these soapless soaps are made there is no glycerine as a by-product* If during 1947, 175 million pounds of glycerine is produced, we can only expect about 15 million additional pounds from outside countries, which will leave at least a 40 million pound shortage during 1947, so glycerine will be the limiting factor in Alkyd Resina during 1947* About the only satisfactory substitute for glycerine in the Synthetic Resin field is Pentaerythritol, which is made from Formaldehyde and Acetaldehyde* There has been a serious shortage on Formaldehyde which has curtailed the production of Pentaerythritol* In some formulations, Pentaerythritol is superior to Glycerine, and if both materials were readily available, the Resin manufacturers would probably use 70 per cent Glycerine and 30 per cent Pentaerythritol* There is some hope of an increased production of Penta during the last half of *47, but not 002085 M 5 ** enough to satisfy all our requirements However, there is hope that by 1948 we will be in a position to satisfy all of our requirements because synthetic Glycerine has been made successfully in a pilot plant, and I believe an important announcement will be made on this within the next ten days* In fact, we are looking forward to a buyers' market on Glycerine in 1948* Maleic Anhydride Resins, used largely in the furniture industry, have been in short supply mostly due to inadequate plant facilities. This shortage will remain with us for the first half of 1947, but there is plant expansion underway and it is believed during the later half of *47 this resin will again be available In sufficient quantities to at least take care of the sanding sealer requirements in the paint and varnish industry. At the present time, there is a serious Phenol shortage, and while it was felt in some quarters at the close of the war we had over-expanded, there have been so many new uses for Phenol, such as lubricating oil additives and insulating materials, that an actual shortage has resulted. Aspirin is made from Phenol, and the demand for Aspirin has grown considerably of late. This might be attributed to OPA, the stock market, the Scotchless Scotch, or a combination of all three. It will be difficult to supply enough of the one hundred per cent Phenolic Resins, but It is believed that the industry will be able to supply you with the required amount of modified Phenolic Resins to 002086 *** Urea Formaldehyde Resins are in short supply, and this will continue for sometime which can be traced back to the Formaldehyde and Methanol shortages. I grant that this report is not very cheerful, but I can promise you that resourceful resin manufacturers will still be "in there" doing their level best and supplying products to their customers. It is high time that we quit burying our heads in the crying towel and i instead get busy and exercise all our ingenuity to carry us over the hump of the next 12 months And what1s even more important, we should get together now and organize our planning in such a way that we don't get caught in these shortages again. The Synthetic Resin Industry, so far as Paints are concerned, is only twenty-one years of age. It has grown and prospered, not entirely because of super brilliance in management or super salesmanship, but to a large degree the success has been -- to use a seven dollar word, which before decontrol formerly cost only two dollars -- technological, or the work of our so-called "crazy chemists". Now our managements have an opportunity to prove themselves, and we are confronted with a real challenge. We have induced you to use our products in your formulations, and while many of these shortages are beyond our control, it is our obligation to see that these raw materials so necessary for your industry are produced in quantities L 002087 ---"saasi?-, 7 large enough to satisfy your requirements. To merely state that the going in 1947 will be tough would be an understatement. If our industry recognizes its obligations, we should, barring acts of God and rule or ruin labor 002088 31 PRESIDENT TRIGG: Are there any questions? Thank you, Charlie. Mow I am goirg to call for some information on Oiticica oil by a man who will talk to you on that subject ;.nd is in a splendid position to do so. Before bringing him up here on the platform, I just want to make the remark that no industry ever had connected with it a supplier more faith a ful and more loyal and more Intelligent in his service to the industry than Mr. Eisenschiml is. Otto, would you come up * to the platform, please? [Mr. Otto Eisenschiml read his paper, entitled, "Oiticica Oil," as follows: < IV 002089 TO 3E HELD STRICILT COHfTPEHTTlt. OJITIL AFTER DELIVER? Ofl COiVHWIQ# FLOOR FRIDA?, NOVEMBER 8, 1946 OITICICA OIL Address by Otto Elaenschinl, Manager, The Sciatiflc Otl Compounding Company- 5&Ufc Annual Convention of Rational Paint, Varntelr`jt~siOTr Association, Inc., Traymore Hotel, Atlantic City, H.J.,Friday, Nov. 8,1946 The Oitlefe* Oil pletnre taring the snrrat year haa net heen altogether a pleasant one. To start Kith, heavy tropical rains, ehiah set in ash earlier then novel, Inst ybm the erop is areally gathered, interfered stth Initial harreetlng opemtiens. *inee the aarsy war fren last peer's srsy see snail, Oitieien Oil van net svallatte in large <puntitles at the begtatng ef the year* Dun ahipnante did begin, a large eerge boat ft--dared near the Brasilia oeaat, saetng a irretrievable lees sf fra TOO te 100 tas ef ell *Mh was badly seeded in the MM Statee* M reprseated a substattal paeantags ef tha attire Ter n fen sate*. thinge na fairfty aneethly, mitt baying ocayetitia ada itself felt* Hthim n sherft tine* thee# fWdgl buyers drew the Brasilia pria shew ear oeilfag pries* 1 ns off fra the narked* ftrgat recasts te ban ear selling prCa inte line vith the Braeilla safest sere dated By the >a oonsnatre tha ads aranganent* ts hgthatrstHtt ta Brasil, bet V theft tine fsand sspylia nearly a^aeftsl Aft tla the eerraft ng aeea eenpletely eeld eft vet mttt tla after the tern sf tha year ea a espeet na ewp oil te reash a. The pria at Shiah it will be offered is anyone's gee--, baft it sill nntsrally be govern*^.Bp the gaerel pria level hr ells prevailing, aft theft tbs* In the tihthi( them vats a the feasibility rather wnefte* ft te adltM - theft sas U srsy ell ay still be hold by speealetivtbayers* If ee the prasnt M# prtea ea#t te bring it eat aaa OoneldareB&e feere mare entertained hr a htli theft tit hUf in gnthering the saafte and the eatinad eeft eaadn in lirtt aadtd lead ta dagawasly hi# aid valma in the eil, bet fortunately this fear mas t 002090 1 realised only 1b liltti satas. It hai h*aa ths easts* sf tin trad* ts aeeapt 9i Trt* Patty Adda as a naxlra, Mid although aoew ahlpsMBtt ^ esiM lm with a* high as 11^, this mi ths sxeaptloa, met ths mis* Cnrlsosly aoogh* lata *hlpateats proved bettor 1b that raapaat the* thaaa raoalTad 1b ths aldda of ths year. Daring ths yaar trades asportad ts bs a few carloads sf CaaahnluBoha Oil, am% all whiah has boos m ths aarkst m sad off fop "asrsi3rB78hrsi Mid playsd is m part 1b ear aarttaa imwy. At that tiaa a* prspsssd ts ths gsrsnoMBt aathorltlss ts sail tills oil "ifOxloMi Oltlelea Oil*t for ths lapis mesas that it has takas bs firs yaar* ts tsaah ovr stenographers ts spoil Oftielsa Oil* aad as wars BSt willing ts paad Miothar firs years adding Casahmanaaohs Oil ts thsir reeabalary. Ths auggsatlOK was adopted, aad It la hopsd that It will raaaia lm faros* tfsxioaa Oltlelea Oil la header In -viaeeeity than the Srasftliaa prsdaet, diiah is esBaidersd a disadvantage, hat this dlaadrantaga is offset by a lower hsat test* The seareit|r of drylag oils ha* asrhsd ts ths sdmtsgs of Oltlelsa Oil, Srirsa ty nossaslty, asqr Tarnish hsssss haws adopted It 1b thsir faraolaa, ami so Oltlelea Oil has won bo w friends aero by faros of eireasstisss tisa by apsalal solos sfforts sa ths port sf suppliers* Ths fhtars for Ofttlsisa Oil loeks bri^it Vadlrssds will svsataslly bs restored to prtssr sfflsftsBsy or bsttsr, as* roads tats ths latsrlsr sf Brasil will mdowhtsdly bs btdlt. Mid asw tsrrttsrlss asqr bs sqpsetsd ts bs tapped frsK tftaa ts tins ts ylsld addltisasl asppliee sf ntts It iwould bs daalrabls ts hma bsttsr has pat lats ass^ehiA slas is saly 002091 * question of tins* During this at dorian past 7*era, a *mlX Mount of all was shipped late tha tfaitsd Stataa la woodaa Corrals, tat this practise should net ha eaaeuragad aad prohahly will ha abandoned. Oil ahlppad la woadaa packages 1* naeaptahla la tha Ttaltsd States, If taught oa laaded mi if it arrlree dariag tha sold araths, hut erau thaa It eaaaat wrjr wall ha ahlppad lata tha interior, aa tha railroads will aat lasas a elaaa Mil af lading, aad qr daaafa would ha f ar huyur'a aaeosat. This la a Aiugareua possibility ahlsh aa aaaslbla buyer would. willingly shoulder. flu part aitlaa of eaursa ara hattar altuatad la this roepeets S aaaaat alawa without aaaa uara sail lag atteatiM to tha aaaaaaitp of ahangiag aur praaaat spate* of apaaiflaatdoaa, aad this raw* dsil art* * oaly apply to Qltla&aa Oil, hut to all other pradaata aa roll* fhara is nothing urang with tha spaoiflaatlous of tha teeriaa* Soetetyfer fasting Katarlala, ddk o all fallow, aa long as things m normally* thaa uaaapaatad aaadltlaaa arias, hswavat^ thaaa speolfltmtlaaa ara apt to fall ue, aad X aaa sarlsisu aaaa wary supleaSMt altuatiaas arialag, aap ant ally la a parlad of falllag prises. fttrlag tha aur, far laetaaes, dun uu atarad largo gsuatitlss of load Oil for tha (larwuut, its diurtisl Mr paaltlau gradually ehaaged, until It rlalatad tha opaelfltatisus. Harartheless, tha aU WtiuH of high guilty, mi la ordinary ttaaa sl#t area hars-ssmadad aprauiuu aa aged mi uall-oattlad aU, hut taapu^ly It ra afaul of tho affloial apooifloatlaua, haauaao its ladla* ruin* hud auak slightly holow tha shdiqg. Qu a teatalaality* a rsjeutiaa of sash all would ha `justified mdar thaaa aoadlttsua, did wars aatlruly hsyaad sailor*a eaatrai. Stellar aaadltlaaa araau with tha hid sold Oitifftg|d Oil thia yaar,, aad ara likaly to arias again Md again la rerlsus mm 002092 nodities. t bars caggastdd, and suggeat tpla mi saraastly, that for anea the hern ha`locked hafora tha horna ia stolon. I hers rseenaandad that all eoaasdltlss la ahlch tha paint and Tarnish Industry is lntsraatad, ha gararaed hy tha speelfiaatleaa af tha Aaerlean 9ooiety far fasting Materials an haratofora, hat that a spaalal eeanittSe af experts In aaeh prodaat aot as a hoard af rarlor ta taka aara af unusual sltuatlsne. This heard should eonsi st af taa toehnieal repreaentattree af buyers, and two af sellers. fhs fifth nan should ho a ehaniat of hlgi standing, prsfsrahly a gorsweat ehsnlst fran tha Snraatn af Standards sr tha lursan af Minas. Z da not want ta ha an altruist, hnt Z aan forasaa tha pestlhllit|r af Tory disagraaahla dispates orsr contrasts, unless this natter la properly taken ears af. Mans af -on sent a dispute on sear hands, certainly net with ear eustousrs er supply boasts, Thar* is na cheaper IneuraoMi against such a eentingsnsy than tha alnpla ranady ahieh Z an proposing. Ottn UianMdhLi Sdentixie ou conpooSShg Co.f Chloage, IUlnaia 002093 311- PRESIDENT TRIGG-: I am glad Mr. Eisenschlml made ~::at last point. It is a matter which he has teen discussing with us, and, as you know, we have taken the matter up with the Bureau of Standards, and we hope that it may be possible for you some time before too long to come down and sit in and see if we can't work out the principle of what you have in your mind. Are there any questions on oiticica oil? The expert is here now if you want to ask him anything. Thank you very much. We want to go on to the subject of Tung and Fish Oil. Mr. Rocca from San Francisco has been good enough to come on to present that subject to you. Mr. Rocca spent most of the war years in Washington, having had charge of the im ports of oils, where he did a very splendid end most useful job. He is back in his own business now, but he comes here particularly well qualified to talk to us on the subject on T.ang and Fish Oil. MR. B. T. ROCCA: Mr. Chairman, Ladies and Gentlemen: Wood oil has had the unique distinction in recent months of being the only oil that was obtainlnable at the simple expedient of calling up your dealer and placing an orc.er. More recently it has had the still more unique dis tinction of being the only oil that is still obtainable at the old ceiling prices after ceiling prices have been 002094 312 . removed. The answer, of course, is that the ceiling price of wood oil was so high as to amount to no celling at all, in effect. Supply and demand were relatively well equated all during the war, except during the early stages. Before the war--by that I mean prior to 19*10, be cause the Chinese were at war long before we were--in normal times wood oil was second only to linseed oil in importance to your industry. Total consumption amounted to approximately 120,000,000 pounds a year. With the shutting off of the supplies from the Far East by the Japanese, it was necessary to bring the oil out over the Burma Road, and supplies dwindled very rapidly, and the price advanced accordingly. At the time of Pearl Harbor, shipments were shut off completely, and the industry was entirely dependent upon the supplies of oil which were already in the country, most of which at that time were in the hands of the Chinese Government purchasing agencies. These stocks were transferred to the Commodity Credit Corporation, and together with small domestic production which was just at that time coming in to take care of the industry during those early years. It was necessary for the Government to impose restrictions on use in order to keep the oil for those uses which were considered essential to the war effort, such uses as electrolytic varnishes, castings, Interior can coatings, waterproof paints, and the like. 002095 313. Under Government restrictions, the consumption of v.'ood oil was reduced to about 15 million pounds a year at the start. As substitutes were developed, this use fell to a low point of 500,000 pounds a month. That is about 6 million pounds a year, and by 194-4-, domestic production was in excess of this figure. In view of this, it was necessary first of all to remove the use restrictions in order to permit the marketing of the coming domestic crop without breaking the price. Subsequently, it was even necessary to make wood oil ex quota ana at this time the use began to rebound from the low point of 6 million pounds a year and eventually reached a level of about 2.5 million pounds a month, or 30 to 35 million pounds a year, about 25 per cent of what we used normally. The Government stocks were completely exhausted in 4-5, and then we were dependent upon our domestic production plus imports. Argentina had shipped small quantities of wood 011 to the United States in 194-5, and early in 194-6. We had the largest domestic production we had ever had, about 10 or 12 million pounds this year, but that was almost all gone by June. So from June forward, we were dependent upon China wood oil supplies to take care of our requirements. These supplies have been coming in in Increasing volume, leveling off at about 3 million pounds a month. It is ray estimate, and it is only an estimate, because no 002096 statistics are available that we are going to have about 30 million pounds of imported Onina wood oil available this year, that is, provided the maritime strikes are ended and we can jet delivery of the oil, which is being shipped to us and a large part of which has already arrived. Wood oil, like all other oils, are still subject to allocation by the International Emergency Food Council* These allocations are implemented by import controls, which you have already heard will probably be terminated on March 31st, if not sooner. The allocations this past year allowed about 60 per cent of the total Chinese production to come to the United States. However, this was not a limiting factor, as until recently it was not posdble to sell China wood oil as fast as it could be purchased in the Orient and the surplus stocks went elsewhere. Russia got about ;5000 tons; the United Kingdom got about 4000 tons .and the balance went to European countries, all European countries obtaining small supplies. About 35 per cent of the Argentine supply this year has been allocated to Europe, and it is probable next year the same situation with respect to moving Argentine oil to Europe and moving China >jood oil to the United States will prevail. The prospects for it for 19^7 are for slightly increased supplies, but still far from normal. Our domestic production will ce at least 15 million pounds, according to the estimates 002097 315- given me by our domestic tung oil producers. This is the largest crop we have ever had, and apparently that crop will continue to grow through the years. Argentine production will be slightly larger, probably 5 to 6 million pounds total available for export, but as I indicated earlier, most of that is expected to go to Surope. The situation in China is still extremely unsettled. Our Chinese friends advise us that they think that shipments will be larger next year, although not materially so. The difficulties inherent in the Chinese situation are definitely limited supplies. Production is down from 25 to 5 per cent. Nobody knows for sure, they do not have any statistical services in China, but press reports were frequently found during the war years of Chinese farmers cutting down their tung trees to manufacture charcoal, or taking them out in order to put in more remunerative crops. However, production is not the main problem, at least next year. It will be transportation. The three railroads most Important to the China wood oil industry are completely immobilized, making the industry de pendent upon water transportation. River craft on the Yangtze were almost all destroyed by riots, our B-29s, or by the Japanese themselves. What were left were subject to commandeering by the Chinese Government. On the face of these difficulties, it is probable the total Chinese exports next year vd 11 not exceed 75 million 002098 316 pounds. Of that quantity, we should get 50 million pounds. Summing it all up, then, we can expect about 65 million pounds of wood oil in 194-7 on the basis of present estimates. This would be, roughly, 50 per cent of our crewar consumption, but nearly twice the quantity of wood oil which the industry has consumed this year, and I am sure that this increased availability will be more than welcome to all pf you, especially in view of the fact that wood oil is now priced in line with other commodities. On fish oil, the situation is very bad indeed. The total catch of fish as of November 1st was less than 20 per cent of the quantity caught to the same date last year. It is estimated that fish oil production did not exceed, on November 1st, JQO tank cars as compared with over 1000 tank cars as of the same date last year. Fishing in Northern California waters has almost ceased. In San Francisco, they are not doing -any fishing at all. In Monterey about 20 per cent of the boats are left. In Southern California, they are catching fish, but from a fish-oil production point of view, al least, Southern California is much less important than Northern California. There is one possible bright side to this picture, and that is that the short supply has made the price so high that the fish oil this year will go primarily into those commodities where it can compete with linseed oil. It is very 002099 317* unlikely that any fidi oil will go into the soap kettle which used to take a very large quantity. It is also unlikely that it will go into dog food or vitamin needs or things like that, that under OPA ceiling prices accounted for a large part of the consumption. Mr. Trigg, you asked me to speak a word about Perilla oil, and I told you not to put it on the agenda because at the time you wrote to :ne, I didn't know anything about it, and so far as I knew, nobody else did. Since then, word has been received from the American Consul in Darien. According to the information that he has been able to gather by sending 15 investigators into the field, there were about 3^,000 tons of Perilla oil seed produced in Manchuria this past crop year. This is only about 25 per cent of the quantity of Perilla seed produced before the war, but it is good to know that they have not forgotten how to grow the crop. We have been trying to find out if any supplies are now available from this crop, and apparently there are not. We don't know Just what happened to them; probably the Russians took a large quantity, as it is known they took all of the soybeans out of the last crop, and possibly a large quantity was used for their own requirements in Manchuria. However, we do hope that we will obtain supplies of Perilla oil next year for the United States. The Chinese Nationalist Government has not yet established itself in 002100 31S- Darien, and the city is a dead port. Until law and order is established, of course business is quite impossible. In dosing, I would like to just say a word in support of what Mr. Eisenschiml had to say with respect to this question of specifications. We who are importers are very much concerned about it particularly at these high prices. During the war it was necessary for the Government in buying overseas to provide in their contracts that merchandise which did not meet specifications was not to be rejected, but was to be accepted with an allowance to be mutually agreed upon or determined with an allowance. I believe that something along the lines that Mr. Eisenschiml has suggested is going to be mandatory if we are to maintain stable marketing condi tions at these high prices. Thank you very much. [Applause] PRESIDENT TRIGG: You brought us a very interesting report, and we appreciate it. N'ow we are going to hear from Mr. Acer on Castor Oil, and he, too, as you all knowr, is well able to talk to us on that subject. MR. V. A. ACER: President Trigg, Ladles and Gentlemen: A fellow said to me this morning that of all the subjects to be talked on here, mine was the most moving of all. [Laughter] My paper was prepared, according to instructions from 002101 '.*3shlng.ton about two weeusago, and conditions have changed to some extent since then, as we all know, but not sufficiently to void anything I have had to say. At the time I prepared this paper, we were starting to emerge from a controlled economy to a free economy. Now we have taken the last step, or practically the last step. [Mr. Acer read his prepared paper as follows: 002102 TO BB ttJSLJ STRICTLI CQHflpSWt?____ _ a f t e r d e l iv e b i o h c o n v en t io n f l o o r mi CASTOR OIL NOVEMBER 8,1946 An Address By V. A* Acer, Vice- president,Spencer Kellogg & Sons, Inc. at the 58th Annual Convention of the National Paint, Varnish Jk Lacquer Assn.,Ino. Traymore Hotel, Atlantic City, N.J., frit&qp, Nor. 8,1946 If a prise or award of any sort is erer .iven to that industry or business w Ich has suffered the aost tt; rough bureaucratic regulation and inter ference, the castor oil business will oe in the running for first prizs. During the ear and since its actual, although not official, conclusion, we hare had almost erary oonblast-on of gererasaat control that can be laaginad. be bare seen castor seed free froa price controls end nest other restrictions with oil prices fixed. Be here seen all three products, including castor ooaaee, freed from price control but with restrictions on imports and we hare seen aaay abortive attempts to mintain price controls on seed, oil, and poneca with business completely tied in a met. As this is being written - about two seeks before its presentation to the convention,- we see castor seed Just freed fro* CPA price controls* He see the first pressing called C.P. or So. 1 castor oil free from paries control, 3c. 3 castor oil free from price controls*, bam sailing prices /'ciaJ-iYr'r-t, Jjd-on dehydrated oastor oil ymA. on castor In thinking over the history of this rather brief period, wo fael like the Irishaan who was asked by a friend of his, *lhe gave yon that black eye". The Irishman replied, "Nobody ,,ave it to e, I bad to fi^bt like hall for it" I In iM past several years needs for castor oil have grown tremendously. During the ten years of the 1930's, castor seed inporta into the Halted States ranged free 38,000 long tans to 97,000 long tons per year, with a yearly average of between 99,000 end 60,000 long tone* In 1941 to 1945, both years inclusive, imports ranged free 110,000 to 174,000 long tone with a yearly average of about 140,000 long teas. Castor seed iaportn during the first nine months of 1946 have been only 70,000 long tone* / 002103 During these sane periods, castor oil production has parallslsd 3sad Lb port5. During the decade ol the 1930's, product-on ranged fr^aa loo of 37,000,JQ0 <x> a high of 75,000,000 pounds with an average of from 55.000. 0.0 to 60,000,000 pounds. In 1941 to 1945 production ranged fron 121.000. 000 to 166,000,000 pounds with an average of something like 140,600,000 pounds* During 1945 *e had neillng prises on ell and penass tot seed prises were froo. On February 13 the QP4 decided prison oa earntor sood sore too high as they fixed a ceiling prise of 195.00 a long ton f.o.b* aajer Brasilian porta and at too sane tlae a coiling pries of 1*143 f#r C* P, castor oil in bulk f.o.b* crashers' aills on too Atlantic Coast and also a calling pries on castor penace. This tied things up and during March, April, My and June the industry pleaded aith the OPA for decontrol or realistic ceilings* they took no action tot we had an OPA holiday during lly and August at which tLco sood could bo bought at the world price lords and it sac bought at prises up to $50*00 or $60*00 per ton ever toe fomer ceilings. Soao ell acred during toio peried but a aajor factor in too industry tad its plant closed dean to strike* VMM OPA soilings acre reiaposed la August, too industry oould buy no seed boouuto we aero $50*00 to $60.00 per tou below the world raises sad ail prises 5# or 6# a pound too loo. On September IS after weeks of pleading with the OPA to d< all sector oil items, they gave eel lings of $142.00 per tou fo*b* Brasilian ports and a celling of $*195 per pound on oil* Since too iaposltlca OMuJrt/L, <-t4v A-w * of tbsso coiling prises, 1 con say tost the ooapnny X represent too bought no/t/ one ton of sood because the world market has ranged anywhere frou a few 002104 -3- dollars to about $60.00 per ton over th*se ceiling -rices and European countries 'ind South American countries .are taxea the seed away. On October 24, just two weeks a*o yesterday, the 0PA decontrolled ca. tor reed and 3o. 1 and So. 3 castor ell but did net decontrol dehydrated castor ell or castor poaace. All our reports Indicate that during this period slaee 03.was reinstated, ths United States has lost such aore seed to other oountries than we can afford to lose and we fear now that castor oil of mil types and grades will be la relatively scarce supply for sons aonths to mooae unless the trtrtisnlj high prioes for beans open new supply sources in the interior of Brasil. Prioes of seed and oil are iuoh too high but supply lines will havw to be filled up to some extent before we can expect to see a reversal of the trend. October 25, 1946 V. A. Acer 002105 320- PRESIDENT TRIGG: Any questions? QUESTION: I 'would like to ask what the prospects are for domestic crops of castor oil. MR. ACER: I am afraid they are very poor. They tried it to a degree of very, very moderate success during the First World War. They have tried it since. It doesn't seem practical, due to the size of harvesting the seed. Is that sufficient of a reply? I could go on and talm about it at some length. I doubt if it will be successful. QUESTION: What quantities were they able to get from this Government project during the war by encouraging trading with Mexico. MR. ACER: As I recall it, our Government entered into an agreement with the Mexican Government by which the Mexican Government is going to furnish something like 75,000 tons of castor beans. Just how much of that was finally brought in, I don't recall offhand, but I would guess it was less than 10 per cent. It never amounted to much of anything. MR. ROCCA: I can answer that; it was 17 tons. PRESIDENT TRIGG: Anything else? Thank you very much, Mr. Acer. Now we are down to linseed oil. Mr. Daniels has been giving this subject, from the industry's standpoint, attention for a long time. As Chairman of the Flax Development Committee, he has been carrying on splendid work both in the 002106 321- field in the Northwest and also in Washington. I know you are all glad Mr. Daniels is here this morning to talk to us on this very important subject. MR. T. L. DANIZL3: Mr. Trigg, Ladles and Gentlemen: It is a great pleasure for me to address you today. I have a sentimental reason for liking the job, because my father was President of this Association long years ago. He had great pride and pleasure in being the head of your body. This is a pretty controversial subject, and I will be very glad to welcome questions afterward from the floor. I hope you don't throw too many cabbages my way. [Mr. Daniels read his prepared paper as follows: 002107 5STH AFUAL COTmmOS National Paint,Tarnish & Lacquer Assn.,Inc* Traymore Hotel, Atlantic City, H.J. Hovember 6,7# S 1946 Tronj Ralph V.Baerson, Director,Public Relatione Chippendale Room TO BD HELD STRICTLY COFHD3JTIAL OTTIL AFTER DELJVSPT OH COFOrTIOH FLOOR FRIDAY, WMKBrH 8, 1946 LINSEED OIL i By T. L. Daniels, Chairman, Flax Development Committee FridayHovember 8,1946 On October 29 the government announced the end of price control on linseed oil* On October 17 flaxseed and linseed meal were decontrolled* As fax as our domestic lin seed oil supplies are concerned, therefore, it may be said that we are back in an era of free markets* The same cannot be said, however, for importing flaxseed or linseed oil* From Argentina our government has agreed to accept 32,000 metric tons of linseed oil from the total purchase made by the International Qnergency Food Council of 120,000 tons. This lot, which is the first lot of linseed oil to be re ceived from the 1945-46 Argentine flax crop, is according to agreement with the Argentine government to be shipped not later than December 31* 1946* How this Argentine linseed oil is to be allocated among consumers in this country has yet to be determined. From. Canada 7*000 short tons of linseed oil purchased by our gov ernment are to be allocated to crushers in the United States for eventual distri bution. Similarly, an approximate 2,000,000 bushels of Uruguayan flaxseed, go4& for approximately 39*000,000 pounds of linseed oil, has during the present year, July 1, 1946 to June 30, 1947, been allocated by our government to American exuShern* The fourth item on the import list is a lot of 300,000 bushels of Mexican flaxseed* equivalent to a little under 6,000,000 po\mds of linseed oil, to be distributed to Pacific Coast crushers. We are advised that as far as India is.concerned, although the flaxseed' crop there appears to be about normal, all of the flaxseed will be re tained for home use. Our supplies of linseed oil available for consumption during the present crop year, according to our calculations* total 545*000,000 pounds against a. disappearance during the 1945-46 year at 720,000,000 pounds. It must be pointed out that the 1945-46 disappearance of linseed oil was on a restricted quota bads, Tha mailt; items that go to make up the total amount of linseed oil available for consumption this year are asi follows! 1. Tha existing factory and warehouse stocks of linseed oil and stocks of flaxseed, which, when reduced to a linseed oil equivalent basis, totaled 189*OGOtOOO pounds. 2* We have estimated that fron this year's domestic crop of flaxseed, now estimated by the government as 23*723*000 bushels (October l} we should receive for consumption 3^6,000,000 pounds of linseed oil* 3. The imports discussed in the previous paragraph total 128,000,000 pounds. The total supply, accordingly, amounts to 684,000,000 pounds of linseed oil, must always calculate a carryover for the end of the crop year, and in this oase we have estimated that carryover at an irreducible minimum of 139*000,000 * pounds. There is one other angle that must be considered, sad that is the question an to how much, if any, Argentine linseed oil or flaxsedk. we may expect for shipment to this country after January 1* 1947* It seems evident that the Peron government $ f 002108 (Linseed. Oil) -S- --*> ~~i -* will hold whatever stocks it considers available for export at a high pfice* If this year's patten is followed* sales will he made to an Inter-Allied OojwJitte* and total purchases will he allocated hy that Inter-Allied Committee to various countries* As Argentina is practically the sole source of supplies for Europe and Great Britain* the pressure to send the hulk of Argentine shipments there will he very great. During the first two months of the present crop year* namely July and August* disappearance of linseed oil. according to our calculations* amounts to 123*885*000 pounds. At this monthly rate of disappearance the total available supplies of linseed oil will last a little under nine months. In other words* we will run out of linseed oil completely hy the end of March. We will have to depend on further supplies* upon arrangements made hy international action with Argentina. While I have not been asked to discuss here the supply situation of, other dry ing oils* 1 would like to point out that in general the quantities of tong* perilla* and fish oils during the present season will he sharply less than those during the prewar years. Soybean oil* though in good supply* is in demand for edible purposes and may not he looked upon for too much help in the present crisis. The hopeful feature of the present season is that government control* which cer tainly last year proved a more serious menace to the domestic flax crop than, all the diseases to which it normally fell heir combined* is now out of the situation. It vdll take the wholehearted cooperation of the government* industry* and the farm- , ers of this country to produce a flax acreage in 1947 that will bring us out of the supply difficulties which now face linseed oil consumers. After the turmoil of the last few months* I feel convinced that the government is prepared to assume leader- ' ship in the effort to produce a substantial flax acreage. We in industry are glad: to pledge our own support to such a government project. To he more specific about the support to he offered V industry te the govern* ment in flax development work* 1 would like to call your attention to the Else* . Institute of the United States and to the Flax Development Committee which forme a part of the Institute. For over-ten years, the Flax Development Committee ha* endeavored to.bring to the farmers of the Northwest the best possible information on cultural seeding practices and has through its contact with farmers* county agents* farm school officials and federal agricultural authorities worked for the improvement of flaxseed varieties* for the planting of flax on better lands* for the control of weeds* and for better growing conditions generally. The work planned for the ensuing year has been enlarged through the generous support of the )aint* vamidi and linoleum industries and particularly to the work of your Assosiatlon. We are glad to welcome on the Flax Development Committee as addition .o the former membership two menbers of the Association representing paint and amish* and an additional representative of the linoleum industry. The Flax t evelopment Committee hopes to expand its work to include other areas besides he Korthwest and to bring its program to the flaxgrowers by a more extended dvertising campaign. 002109 (linseed Oil) -> F 'L AXS ..E..E..D....A..M--D LIHS11SE..D....O...I.L.....SUP....P..L..E..S.. STOCKS. July 1, 1946* Flaxseed* Factory-Varehouse stocks 2.789*000 bu. Comaerclal storage stocks 1.025.000 bu. 3.814.000 bu. flaxseed stocks: 3,214,000 bu. * oil equivalent . . 73*610*200 pounds (using 193 pounds oil per bu.. 6-yr. avg. yield) Linseed oil: Factory-Warehouse stocks 115.468,000' pounds 2. i. i S, t_ 0 k , oil equivalent 189.078.200 pounds FLAX CROP 1946-1947: Production October 1, 1946 estimate 23.723*000 bu. 80$ of production estimated to be marketed (based* on l4-yr. average marketings) 18.978,400 bu. Production in terns of oil equivalent " ri8.978.5bO buT at 19.3 pounds oil per bu. 6-yr* average yield) 366.283.i20 pounds i IMPOSTS: Argentina (32.000 metric tons linseed oil* purchased) 70,000,000 pounds t Canada (7*000 short tons linseed oil purchased) 14.000*000 pounds Mexico (est.) 300*000 bu. at 19*3 lbs.yield per hr.) 3790OQO pounds Uruguay (eat.) 2.000.000 bu. at 19*3 l^58* yield. *. ) 38,600,000 pounds^ V I E E I i ' oil equivalent . . .. .... 128.390.000 pounds TOTAL SUPPLY............................................................................................... 683,751.320 pounds LESS: Minimum Carryover July 1. 1947: Flaxseed: oil equivalent .....* (Factory-warehouse stocks plus commercial storage; 2,000,000 bu. at 19*3pounds oil per bu. 6-yr. avg. yield) (1929-1945 average 17 years 3*300.000 bu.) (Lowest, 1935 1,800.000 bu.) (Highest, 1944 9,000.000 bu.) Linseed Oil* rio^yr. avg. 1935-1944 (Lowest, 1933 (Highest, 1944 170.307.000 lbs.) 104.949.000 lbs.) 337*385.000 lbs.) 38600.000 pounds 100,000,000 pounds T t_ a 1 Carryover 138,600.000 pounds BALANCE AVAILABLE FOR CagSUlgTIOW AS OIL DUBIUC 1946-194T ----------------------------------------------------- CHOP X3AB 545.151. tao Disappearance 1945*46 on restricted quota bauiis72Q050,000 lbs* Monthly Average disappearance 60,000,.000 lbs* 002110 43*s.- ;sW-<^*sw- 4?8N*Rso~rZ~ (Linseed Oil) At this disappearance rate (60*000*000 pounds monthly), total available sup plies (5^5*1513?0 pounds) will last for 9 months, or from July 1, 1$46 to ApriJ 1, 1947, at which time, except for minimum carryover and working stocks, there '.till he no linseed oil in the country unless consumption is arbitrarily reduced or increased supplies made available, if any can he found* Sven with no carryover or working stocks an unheard of and impossible situation, supplies would only he ' good for an additional 2 l/3 months of until June 10, 1947* when the United States would be entirely bare of oil with a shutdown of all plants and industries con suming drying oils, which means virtually all types of industry from foundries , to furniture factories* In these calculations we have disregarded farm and country elevator stocks. There has never been an actual determination of these stocks, and if a larger acreage is proposed for 194?, any increase over normal in these country stocks will be needed for seeding* It will require 4 l/2 million bushels to sebd 6 mil lion acres* These calculations also assume that all seed from the 1946-1947 crop will be marketed by April 1, 1947* This has never been done, and will not be done this season* Yfe estimate marketings by April 1 will be 10 to 15$ 'short of the total} hence, supplies should actually be exhausted in early March 1947 instead of April 1* 002111 32a FRZSIDENT TRIGG: May I add to what Mr. Daniels has said with regard to raising of our own flax to a greater ex tent, I think you will agree with this. Tool, that we have demonstrated that we can do it. It can be done,because in 1543 we raised 32 million bushes of flaxseed, so we can do it, and when somebody reports such information as Mr. Daniels has referred to, it refutes itself by the facts. This committee of which Mr. Daniels is the head has a real program. If time wo uld permit, I know he would have been glad to come here prepared to go into a lot of detail as to what they intend to do, but I think I am correct in saying that the two real, basic Jobs that you have and will work on is increasing the acreage and increasing the production of flax per acre. It all comes down to something as simple as that, and on the second point of increasing the production per acre, again it has been demonstrated that that can be done, because in areas where the average for the whole area has been only eight bushes per acre, some farmers in that area have raised as much as twelve or fourteen bushes per acre, so it can be done. There is a grand Job to be done here to put ourselves on a more independent basis with respect to our supply of flaxseed and linseed oil, and we know the Job is in the most competent hands, and we are Just depending on you and your associates to keep on with the good work. You can be assured 002112 323 of the paint industry's support in a wholehearted way. QUESTION: May I ash Mr. Daniels to be a little bit .T.ore specific about the arrangements made yesterday concerning the distribution of the Argentine oil, the method of distribu tion and price? MR. DANIELS: I wasn't present at that meeting yesterday, but I talked to men who were there. I understand that the oil will be allocated to the crushers on the historic basis of their imports, and it will be allocated to them on the basis of market price. Our understanding is there is nothing in it for the crushers except to make a rapid distribution to you people. Just as rapidly as we possibly can. PRESIDENT TRIGG: Are there any other questions? Thank.you! After we get all these pigments and liquids and oils and resins and solvents and everything else, cellulose products, we have got to have something to put them in, so I am going to call now on Mr. W. C. Stolk to talk to you about Containers. 002113 i-IR. *..fr. nC'J . STTOOLL;<K.: -'.i*. Trigg, Ladies and G-entlemen: I am sure that you fully expect that anything I may say about container needs or supplies for 19^7 must of necessity have many "ifs," "ands," and "buts," because the picture is en tirely beyond the control of the can manufacturers. Never theless, I think that now and for the first time since the be ginning of the war, there are some very good signs which should me-n and result in more containers for the paint indus try in 19^7. To understand fully the situation for the immediate future, I think it is necessary to look back for a moment over the year 19^6, ana I hope you will permit me one or two minutes. I should like to do this for two reasons. First, your industry, as you know, is one of the large consumers of metal containers. In my opinion, you are entitled to all of the pertinent facts at our disposal. Second, I feel the can industry, despite many dif ficulties this year, has done an outstanding job on an overall basis. While I would doubt that there is a member ofyour industry who could not have filled and sold more cans than he has received this year, it is only fair to say the paint in dustry ranks next to the packers of perishable foods in de liveries of metal containers. The excellent efforts of your organization in Washington are responsible in a large measure for this result. 002114 325* The steel shortage brought about by the war, and the war itself, left us with depleted inventories. The steel and coal strikes during the early part of this year, with re sultant losses in production, preceded a series of the largest packs in the history of food canning, and the greatest demand ever to be mace on the can manufacturing industry. As you, of course, know, Government orders give perishable foods a priority over all other container requirements. To give you an idea of what happened up to September first, the packers of perishable foods, with the exception of the two largest uncompleted packs, had packed 24-1,162,000 cases as against 181,4-88,000 cases for the corresponding period of 194-5--a difference of 59*674-,000 cases or 1,500,000,000 cans. Here is a partial list--and there are many more, but I will call off some of the ones that indicate the tremendous increase in the packs which brought about, of course, tnis shortage of steel and which you felt very defi nitely: Apricots 135* Berries II Cherries Cranberries III Figs Grapefruit Juice Orange Juice Blended Citrus Juice 55 Tomato Juice 90 Corn 96 Beets 89 Tomatoes 63 Tomato Soup 173 All other soups 79 Baby Food - 'way up and still going strong! 002115 326 . These tremendous demands, under the priority rulInge, explain why more plate and hence more cans were not available for the paint Industry. I could talk at some length stout the problems that confronted us and the expense involved in meeting the demand for this year on the tremendous food packs, and to the credit of the can industry I must say I do not know of any perishable food that spoiled due to lack of containers. Let's see what 19^7 holds for you, which is what I know really interests you. It should be understood that the facts and figures I am about to give you regarding possible production in 19^7 are predicated on Pollyanna hopes that there will be no im portant labor stoppages during the year. While it is diffi cult to feel very optimistic on this score, I personally be lieve there are some favorable signs on the labor and politi cal fronts. I hope time will justify my optimism. For some months, we in the can Industry have been attempting to obtain decontrol. One of the recognized methods is to convince OFA that the supply in our industry balances the demand. This has resulted in very thorough studies made at the rec.uest of the OPA Advisory Committee by a committee of the Can Manufacturers Institute to determine if the estimated demands for 19^7 can be met by the can industry1s ability to * L: 002116 32? produce. These studies have been made in tons of steel and only the total figures for each industry are available. The figures I will give you for the paint industry, while in tons, should serve our -urpose today in presenting a fair picture of what to exoect. In 19^1, your industry consumed 99,203 tons of plate for cans. The Can Manufacturers Institute's committee esti mates that the 19^7 requirements of your industry will approxi mate 150,000 tons, or an increase of 50 per cent over 19^1. The can industry is equipped to process 210,000 tons, or double the can production of 19^1; so it can clearly be seen that the availability of steel and not can-making facilities will determine whether you receive the number of containers you will require next :.ear. But next, let us look at the steel forecast for 19^7 and see if there will be sufficient tonnage to take care of the cans for paint, varnish and lacquer. In 19^1, the can manufacturing industry consumed 2,BOO,000 tons of steel of the so-called tin mill product classification, which are the gauges used in the manufacture of cans. The Can Manufacturers Insti tute' s committee estimates the can requirements of all indus tries for 19^7 a non-restrlcted basis as 3,^70,000 tons, or an increase over 19^1 of approximately 25 per cent. To this must be added about 100,000 tons for caps and closures. The expected production of tin mill products by the steel 002117 323 industry Is calculated to be 4,200,000 tons, leaving a margin of about 7CC,C00 tons over the estimated requirements for cans. Cut of this margin or safety factor must be supplied the tonnage wv.lcn may be allotted for export by State Depart ment directives. 3y using 19^6 as a guide, it is possible that such directives may amount to 5CC,CC0 tons. If everything goes perfectly, you see, production and requirements will be just about "even-Steven," but when you realize that no allowance is made for work stoppages, you can see that this is slicing things pretty thin. There are, however, other favorable signs which should tend to widen this margin. Steel mills are planning increased production, though the time at which the new facili ties will be ready is still uncertain. Any reduction which the State Department might make in its allocation of 500*000 tons for export would, of course, be of help to the overall picture. In fairness to the steel companies, I would like to say that I think we all can understand why the steel people would- be reluctant to ship any export tonnage needed for domestic use except by Government directives. There are also certain factors in regard to the fruit and vegetable outlook which may react to the advantage of your industry. Recent market reports already begin to in dicate that the large 15^6 pack is rapidly filling the chan nels of distribution, which will tend to eliminate the 002118 329 necessity for filling "pipe lines" in 19^7 and thereby reduce the demand to actual consumer requirements. The law of sup ply and demand should influence the canners* packing plans, even t.iough nature may provide the abundant crops that were available in 19^6, and any slacking up in the food pack would, of course, mean a proportionate flow to other industries. So, you see, there are many factors to be balanced ore against the other. There is ample capacity in the can manufacturing industry to meet your estimated needs. Predic tions are that, giver, the opportunity for continuous produc tion, there will be enough steel. The big question mark is whether there will be industrial peace, and one of us, I be lieve, is as good a Judge as another as to that development. I feel sure the can manufacturers will see that you are in possession of all the facts at their disposal, and re gret that the only guarantee I can offer at this time is the industry*s desire to serve you to the best of its ability. [Applause] PRESIDENT TRIGG: Thank you, Mr. Stolk. Are there any questions or discussion? Thank you. Bill. I want to say that our first order of business after this Convention is over will be to print and distribute throughout the industry copies of all of these raw material statements that have been made here tnis morning. We think they contain a lot of important information for you ana for 002119 33Q others who are not here, and that you will want to have them before you to refer to from time to time. There is a matter I would like to talk to you about this morning. I just want you to .now that we have been constantly emphasizing with the Government agencies that the surest way to get the fullest possible measure of produc tion was to get the industry back into some kind of a balance with regard to production, instead of having some things we no longer make at all or maybe make only in a limited way, because of artificial price regulation. Therefore, we have said to them that the surest way of getting a balance, getting what is needed of various types of materials and to get the largest possible supply, subject to our rsw material limita tions, is through decontrol, and we have assured them that under decontrol we were confident that the prices would be no higher than they would have to be if they attempted unofficial ly to set up prices on this, that and the other item, and they might even be lower because the spirit of competition is still rising in this industry, which is today at least four teen hundred manufacturers and maybe sixteen or eighteen hundred; there is no way of telling exactly. Je have met with various reactions, but I think I can say to you that so far as OFA is concerned today, they realize the truth of what we have said to them and if they were completely free agents in the situation, our industry 002120 331 would be decontrolled not only on industrial finishes but on trace sales as well. Unfortunately, for the good of the country, the National Housing Administration has stepped into the picture and, being ferrful that because of the shortage of linseed oil and some other raw materials maybe they would not get all of the house paint that they required, regardless of the requirements of other branches of industry, they have said, "No, it must not be decontrolled.11 Yesterday, those of you who were present at the Industrial Finishes meeting in the afternoon will remember that a resolution was Introduced and passed to take proper steps to insist further with CPA and with the Government that industrial finishes should be decontrolled. I am glad they did that; I think it is a proper thing. I want to suggest to you this morning, if you see fit, if it meets with your approval, that somebody make a motion, which will have to be properly worded and in good strong language, that the best interests of the Government and the economy generally will be served if all material is de controlled. Now, I told you that they know that. We have been driving it home to them in season and out of season and intend to continue to do so, but formal action by a large group of people carries weight in the considerations in Washington, and so I am suggesting and asl-cing you if anyone cares to move 002121 33? that such action be taken, and if you want to act favorably upon it, it might help. MR. SHELDGM: I move you, sir, that this Convention 30 on record that all paint material, industrial finishes and paint sales oe decontrolled. / - *- c [The motion was seconded by several members.] PRESIDE.*? TR^G-G-: Is there any discussion? If not, all those in favor, please say "aye"; contrary, "no."' I didn't hear a single "Mo." [Laughter] Ladies and gentlemen, Mr. Melum is the Vice-Presiden of our organization. He has long been a very faithful and useful worker in our common cause. He had expected to take a considerable part in our deliberations this week, but, un fortunately, he developed last Tuesday night, as he got here in Atlantic City, a bad cold which made it impossible for him to do so. While he is not feeling any too well this morning, he was good enough to come down here to take over the gavel for ,,ust a few minutes, because we want to see him in action and want you to see Mr. Melum and know what a grand fellow Kelmer Melum is. [Applause] [Vice-President Helmer A. Melum assumed the Chair.] CHAIRMAK MELUM: I will entertain a motion to ap prove oxle actions of the Executive Committee since the time of the last Annual l-leetlng. Do I hear such a motion? [Upon.motion regularly made and seconded, it was 002122 333 * unanimously voted to approve the actions of the Executive Committee since the last Annual Meeting.] CHAIRMAN MELUM: We now have the report of the Nominating Committee, by Mr. William Zintl. MR. W. M. ZINTL: Mr. Chairman, Ladies and Gentlemen Since the preliminary report of the Nominating Committee the other day, there have been no changes. Therefore, we submit this list of nominees: Vice-President J. Heath Wood Treasurer E. A. Foy, Jr. Divisional Vice-President T. A. Flynn Regional Vice-Presidents: New England Eastern Southern Central Southwestern Western F. J. Lane H. 5ralth Davis E. L. Gott Bernhard Mautz Alfred J. Knapp W. W. Holt Executive Committee, for three years: S. C. Dunning George W. Jenkin H. S. Margetts Robert W. Matlack Fletcher W. Rockwell F. G. Weed And, finally, for President, Ernest T. Trigg! I make a motion that this list be duly elected. [Applause] CHAIRMAN MELUM: Is there a second to the motion tnat has been made? 002123 33^ [The motion was seconded by several members.] CHAIRMAN MSLUK: Are there any other nominations? If not, all those in favor signify by saying "aye"; contrary, "no." It is unanimously carried. I will now turn the meeting back to our new Presi dent, Mr. Trigg, and ask him to install the newly elected officers. Congratulations, Mr. Trigg! [President Trigg resumed the Chair.] PRESIDENT TRIGG: Thank you for this further evi dence of your confidence. It will not be abused. Is Mr. Mood in the room? Would you come up here and let everybody take a look at you? This is your new VicePresident, gentlemen, Pete Wood; [Applause] MR. J. HEATH WOOD: Thank you very much, gentlemen. Needless to say, this is an honor that I very much appreciate, and also the privilege of being so closely associated with Mr. Trigg and the other officers and the Executive Committee of the National Association. Frankly, I don't know just what the duties of the office are, but whatever they are, you may be sure that I will assume the obligations to the best of my ability. Thank you very much! [Applause] PRESIDENT TRIGG: I think you would like to see your Treasurer, the fellow who is responsible for all of the bunds. Nobody knows him very well. I said "very well." biters is Ed Foy? Come up here, Ed, and give an account of 002124 335 your stewardship. MR. 70Y, J?..: I am sure you realize now that treasurers are perennial things; they go on and on and on. Flerse let me assure you that since I an elected to the office, I will do everything possible to furtner the interest? of the Association. [Applause] PRESIDENT TRIGG: Is Mr. Flynn here? He is the Divisional Vice-President for the Wholesale Division. Is Braith Davis here? They will have to be docked. Is Ed Gott here? Bernhard Mautz? Mr. Mautz must be here. Come up here a minute and let's have a look at you. [Applause] Frank Lane? I guess he stayed up too late last night. Alfred J. Knapp? Mr. Holt of California is not here. Stanley Dunning, Executive Committee member? George W. Jenkin, Executive Committee member? Herbert Hargetts of San Francisco is not here. He had to come to Washington last week on a special Advisory Committee meeting and he couldn't be here again this week. Robert Matlack? I guess they must have ganged up on us. Fletcher W. Rockwell? [Applause] We are glad to have you back with us. 002125 ~*s0aq- 336 Fred Weed, are you in the room? [Applause] Come up here and say a word or two, won't you? MR. F. G. WEED: I regard this honor, Mr. Trigg, as a very definite recognition of Detroit's interest in our Association's affairs. ifnile Detroit is known principally for automobiles and unions, paint is Detroit's fifth industry, being but four slots below the automobile in dollar value. Its voice in the councils of the Association, therefore, need not be a mumbled one, While I am not bringing the wisdom and vision of Tom Neal and Eddie Foy and others of Detroit's pioneer con tributors in the Association's history, I hope it may be my privilege to measure up to what you who have chosen me may expect, and I pledge my earnest effort at all times in the Association's interest. Thank you very much! [Applause] PRESIDENT TRIGG: Would someone like to move that an expression of appreciation to the speakers on our program this week be extended to them? Would somebody make such a motion? [Upon motion regularly made and seconded, it was unanimously voted to extend an expression of appreciation to the Convention speakers.] PRESIDENT TRIGG: Gentlemen, that concludesour business-- 002126 337 VICE-PRCSIDSHT MSLUM: Mr. President, I would like to say something. Ladies and gentlemen,. I have been asked to present a matter to you in behalf of the Executive Committee of the Association for the past year. It is very seldom that we have the opportunity to express our appreciation and thanks to those who are carrying on the affairs of our industry at Headquarters in Washington and particularly to our President, Mr. Trigg [applause], who has given so unselfishly of his time and effort in behalf of the interests of the industry throughout these troublesome years that we have passed through. Ve see now all of this effort has taxed him and what it has meant to him. We have seen how tired he has become at times, and yet, how faithfully he has continuously carried on. It is the recommendation of the Executive Committee, therefore, that we express this appreciation in a measure to him by a resolution today that will ask him again, if you please, to take at least a month's vacation and to take a trip possibly on the ocean some place, a cruise of some kind, where he can completely relax and regain some of the strength that he has lost in the effort that he has put forth particularly during the past year, and that he take this vacation at the expense of the Association. I would like to have someone make 002127 a motion to that effect. MR. FLETCHER ROCKWELL: If you will change that word "ask" to "insist," I will so move. VICE-PRESIDENT MSLUM: Thank you. I will be very glad to do that. We have asked before; that is the reason why I ask again. We will insist upon it this time, Nr. Trigg. Is tnere a second to that motion? [The motion was seconded by several members!] VICE-PRESIDENT MELUM: Nay I ask for a rising vote on that resolution? [The members arose and applauded.] PRESIDENT TRIGG: Mr. Melum, Ladies and Gentlemen: This embarrasses me. t comes very much as a surprise, and I am naturally very much affected by it. I very sincerely appreciate it because I am confident of its sincerity. Thank you. My work is a pleasure to me. I love this industry. Gentlemen, the Convention is over now. We were fortunate in getting through a little earlier than we expected. However, the buffet luncheon which is referred to in the pro gram is ready now in the Rose Room, which is Just outside the door and up that short flight of stairs in the rear of the building, and it is on the house, so come and get it. This Convention is adjourned! [The Convention adjourned at 12:35 p..3 002128